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

Direct materials

$$40$ per unit

Direct labor

$$60$ per unit

Variable overhead

$$20$ per unit

Fixed overhead

Variable selling and administrative expenses

$$8,000,000$ per year

$$11$ per unit

Fixed selling and administrative expenses

Units produced

Units sold

Sales price

$$4,750,000$ per year

$100,000$ units

$70,000$ units

$$360$ 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 $1$

Required $2$

Prepare an income statement for the year using variable costing.

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