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 Fixed overhead Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $3,000,000 $7,000,000 $ 770,000 $4,250,000 100.000 units 70,000 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 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing? Required 1 Required Required 3 Prepare an income statement for the year using variable costing. SIMS COMPANY Variable Costing Income Statement Sales 24,500,000 Less: Variable costs Direct materials Direct labor Variable overhead costs 2,800,000 4,200,000 2,100,000 9,100,249 Total variable costs (Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead costs 4,250,000 Total fixed expenses Net income (loss) 4,250,000 898,000 Required 2 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)