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

Direct materials

Direct labor

Variable overhead

Fixed overhead

$$7,000,000$ per year

Variable selling and administrative expenses

$$11$ per unit

Fixed selling and administrative expenses

$$4,250,000$ per year

Units produced

$100,000$ units

Units sold

$70,000$ 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.

Complete this question by entering your answers in the tabs below.

Required $1$

Prepare an income statement for the year using variable costing.

$\backslash$table$[[$SIMS COMPANY,$],[$Sales$,,],[$Less: Variable expenses,,$],[$Variable selling and administrative expenses,,$],[$Variable cost of goods sold,,$],[,,],[$Contribution margin,,$],[$Less: Fixed expenses,,$]]$