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 $ 40 per unit $ 60 per unit $ 30 per unit $ 7,000,000 per year $ 11 per unit $ 4,250,000 per year 100,000 units 70,000 units $ 350 per unit 1. Prepare an income statement for the year using variable 2. Prepare an income statement for the year using absorption costing. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Sales $ 24,500,000 Cost of goods sold Gross profit 24,500,000 Selling and administrative expenses Income $ 24,500,000