Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. $ 35 per unit $ 55 per unit $ 30 per unit $7,350,000 per year $ 11 per unit $ 4,750,000 per year 2. Prepare an income statement for the year using absorption costing. 105,000 units 75,000 units $ 350 per unit 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. SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses $ Variable cost of goods sold 90,000,000 Variable selling and administrative expenses 825,000 $ 26,250,000 1. Prepare an income statement for the year using variable costing. 2. 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. SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed overhead Fixed selling and administrative expenses Income $ 26,250,000 $ 90,000,000 825,000 90,825,000 4,250,000 7,250,000 11,500,000 < Required 1 Required 2 > 1. Prepare an income statement for the year using variable costing. 2. 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 absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Sales Cost of goods sold Gross profit Selling and administrative expenses $ 26,250,000 14,250,000 12,000,000 7,675,000 $ 4,325,000 < Required 1 Required 2 >