Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this year follows. 40 per unit 60 per unit Manufacturing costs Direct materials Direct labor Overhead costs for the year Variable overhead Pixed overhead Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $2,100,000 $8,400,000 $ 725,000 $4,250,000 105,000 units 75,000 unita 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? Required 1 Required 2 Required 3 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Sales $ 26,250,000 Less: Variable costs Direct materials Direct labor Variable overhead $ 3,000,000 4,500,000 1,500,000 Variable selling and administrative expenses 9,000,000 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead Net income (loss) Required 1 Required 2 Required 3 Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Net income (loss) Required 1 Required 2 Required 3 Under what circumstance(s) is reported income identical under both absorption costing and variable costing Reported income identical under both