Sims Company began operations on January $1.$ Its cost and sales information for this year follow.

Direct materials $ $30$ per unit

Direct labor $ $50$ per unit

Variable overhead $ $30$ per unit

Fixed overhead $ $7,700,000$ per year

Variable selling and administrative expenses $ $11$ per unit

Fixed selling and administrative expenses $ $4,000,000$ per year

Units produced $110,000$ units

Units sold $80,000$ units

Sales price $ $350$ per unit

Prepare an income statement for the year using variable costing.

Prepare an income statement for the year using absorption costing.