Exercise 19-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. $ Manufacturing costs Direct materials Direct labor Overhead costs Variable 35 per unit 55 per unit $ 40 per unit Fixed $6,300,000 (per year) $ 725,000 $4,750,000 Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit 105,000 units 75,000 units 350 per unit $ 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement $ 26,250,000 Sales Less: Variable costs Direct materials Direct labor $ 2,625,000 4,125,000 3,000,000 6,300,000 Variable overhead costs Variable selling and administrative expenses 16,050,000 10,200,000 Total variable costs Contribution margin Less: Fixed expenses overhead Fixed selling and administrative costs 75,000 6,300,000 Total fixed expenses 6,375,000 $ 3,825,000 Net income (loss) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Net income (loss)