Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials $ 35 per unit Direct labor $ 55 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 $ 5,000,000 per year Units produced 110,000 units Units sold 80,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Prepare an income statement for the year using variable costing. $ 28,800,000 SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Direct materials $ 2,800,000 Direct labor 4,400,000 Variable selling and administrative expenses 880,000 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 8,080,000 0 Income Required 1 Required 2 Prepare an income statement for the year using absorption costing. + SIMS COMPANY Income Statement (Absorption Costing) 0 $ 0