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 $ 30 per unit Fixed overhead $ 7,350,000 per year Variable selling and administrative expenses $ 11 per unit Fixed selling and administrative expenses $ 4,500,000 per year Units produced 105,000 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