On January 1, 2021, Hodge, Shelton, Reid and Sims Co. began operations. The company manufacturers personal protective equipment for colleges and universities to address health concerns during the COVID-19 pandemic. Cost and sales information for the company this year is provided in the table below. Manafacturing costa Direct naterisls 40. per unit 60 per unit Direet labor overhead costs Variable 30 per unit (per $7,350.000 year) Tixed Selling and adninistrative costa for the year Variable $775,000 $5,000,000 Tixed Production and sales for the year Unite produced Unite sold Sales price per unit 105,000 units 75,000 unita 360 per unit 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing.