Sims Company, a manufacturer of tablet computers, began operations on January 1, 2015. Its cost and sales information for this year follows Manufacturing costs Direct materials Direct labor Overhead costs for the year 35 per unit 55 per unit $2,000,000 $8,000,000 Variable overhead Fixed overhead Selling and administrative costs for the year Variable Fixed $750,000 $4,750,000 Production and sales for the year Units produced Units sold Sales price per unit 100,000 units 70,000 units 360 per unit 1. Prepare an income statement for the year using variable costing SIMS COMPANY Variable Costing Income Statement Sales 25,200,000 ess: Variable costs Direct labor Direct materials Variable overhead Variable seling and administrative expenses 3,850,000 2,450,000 750,000 otal variable costs 7,050,000 Contribution margin ess: Fixed expenses ixed selling and administrative costs ixed overhead 4,750,000 8,000,000 Total fixed expenses Net income (loss) 12,750,000