Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor Variable overhead $ 30 per unit $ 50 per unit $ 30 per unit $ 7,700,000 per year $ 11 per unit $ 4,250,000 per year 110,000 units 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. 2. Prepare an income statement for the year using absorption costing. 80,000 units $ 360 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 $ 28,800,000 Less: Variable expenses Direct materials Direct labor $ 2,400,000 4,000,000 2,400,000 8,800,000 19,120,000 Fixed overhead Contribution margin Less: Fixed expenses Fixed selling and administrative expenses 4,250,000 Fixed overhead 7,700,000 Income Required 1 11,950,000 $ 7,170,000 Required 2 > 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 Gross profit Selling and administrative expenses Income $ 28,800,000 28,800,000 $ 28,800,000 < Required 1 Required 2 >