Sims Company began operations on January 1. Its cost and sales Information for this year follow. Direct materials $ 35 per unit Direct labor $ 55 per unit Variable overhead $ 40 per unit Fixed overhead $ 6,388,880 per year variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,250,000 per year Units produced 105,080 units Units sold 75,000 units Sales price $ 360 per unit 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. 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) S Sales 27,000,000 Less: Variable expenses S Variable cost of goods sold 9,750,000 Variable selling and administrative expenses 825,000 10,575,000 Contribution margin 16,425,000 Less: Fixed expenses Fixed overhead 6,300,000 Fixed selling and administrative expenses 4,250,000 Variable selling and administrative expenses 10,550,000 Income $ 6,375,000 X >X Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY Income Statement (Absorption Costing) Sales $27,000,000 Cost of goods sold 14,250,000 Contribution margin 12,750,000 Selling and administrative expenses 4,250,000 Loss x $ 8,500,000