Sims Company began operations on January 1. Its cost and sales information for this year follow.

Direct materials	$ 40	per unit
Direct labor	$ 60	per unit
Variable overhead	$ 20	per unit
Fixed overhead	$ 8,000,000	per year
Variable selling and administrative expenses	$ 11	per unit
Fixed selling and administrative expenses	$ 4,250,000	per year
Units produced	100,000	units
Units sold	70,000	units
Sales price	$ 350	per unit

1. Prepare an income statement for the year using variable costing.
2. Prepare an income statement for the year using absorption costing.
3. 

Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. 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. Prepare an income statement for the year using absorption costing