Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. 35 per unit 55 per unit $4,000,000 $6,000,000 Manufacturing costs Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead Selling and administrative costs for the year Variable Pixed Production and sales for the year Units produced Units sold Sales price per unit $ 25,000 $4,500,000 100,000 units 70,000 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, 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing? Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Sales Less: Variable costs $ 24,500,000 Net income (loss) Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Direct materials Less: Cost of goods sold Direct materials Net income (loss)