Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. 30 per unit 50 per unit 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 Unite sold Sales price per unit $ 20 per unit $8,800,000 (per year) $750,000 $4,500,000 110,000 units 80,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement $ 28,000,000 Sales Less: Variable costs Direct materials Direct labor $ 2,400,000 4,000,000 1,600,000 750,000 Variable overhead costs Variable selling and administrative expenses 8,750,000 19,250,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead costs Fixed selling and administrative costs 8,800,000 4,500,000 Total fixed expenses Net income (loss) 13,300,000 $ 5,950,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Sales $ 28,000,000 Less: Cost of goods sold Variable overhead costs Direct materials Direct labor Fixed overhead costs Cost of goods sold Gross margin Selling general and administrative expenses Fixed selling and administrative costs Variable selling and administrative expenses Net income (loss)