Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows.

1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing.

$ 35 per unit 55 per unit A 40 per unit $6,300,000 (per year) Manufacturing costs Direct materials Direct labor Overhead costs Variable Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ 725,000 $4,500,000 105,000 units 75,000 units 360 per unit $ Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Net income (loss) Tigar GRIVO OVULUTUS yul Uly ADSUI PLIUI CUS . SIMS COMPANY Absorption Costing Income Statement Net income (loss)