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	$	35	per unit
Direct labor	$	55	per unit
Overhead costs
Variable	$	40	per unit
Fixed	$	6,000,000	(per year)
Selling and administrative costs for the year
Variable	$	700,000
Fixed	$	4,000,000
Production and sales for the year
Units produced		100,000	units
Units sold		70,000	units
Sales price per unit	$	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.

Please ost instructions on how you got the answer, like formula.