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 $ 35 per unit $ 55 per unit $ 20 per unit $ 8,400,000 per year $11 per unit $ 4,750,000 per year 105,000 units 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 75,000 units $ 350 per unit Answer is complete but not entirely correct. 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 Fixed overhead Variable cost of goods sold Contribution margin Less: Fixed expenses Direct labor Fixed selling and administrative expenses Income 26,250,000 $ 11,550,000 (3,300,000) 8,250,000 17,175,000 8,400,000 4,750,000 Required 1 13,150,000 $ 4,025,000 Required 2 > Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Direct materials Total fixed costs Gross profit Contribution margin Income $ 35 55 (20) 80 $ (100) < Required 1 Re