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 75,e00 units $ 360 per unit 1. Prepare an income statement for the year using varlable costing. 2. Prepare an income statement for the year using absorption costing. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses $ 27.000 000 Variable cost of goods sold Direct materials Direct labor $ 5 700,000 Income Required Required 2> uy entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. ook SIMS COMPANY Income Statement (Absorption Costing) ant Int ences < Required 1 Required 2 >