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

$\backslash$table$[[$Direct materiats,$$40$ per unit$],[$Direct labor,$$60$ per unit$],[$Variable overhead,$$20$ per unit$],[$Fixed overhead,$$8,400,000$ per year$],[$Variable selling and administrative expenses,$$11$ per unit$],[$Fixed selling and administrative expenses,$$5,000,000$ per year$],[$Units produced,$105,000$ units$],[$Units sold,$75,000$ 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.