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 $ 30 per unit $ 50 per unit $ 20 per unit $ 8,000,000 per year $ 11 per unit $ 4,750,000 per year 100,000 units 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. 70,000 units $ 350 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales $24,500,000 Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income 0 0 Required 1 Required 2 > 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 Income $24,500,000 24,500,000 $ 24,500,000 < Required 1 Required 2 >