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

Direct materials

$ 30

per unit

Direct labor

$ 50

per unit

Variable overhead

$ 40

per unit

Fixed overhead

$ 6,300,000

per year

Variable selling and administrative expenses

$ 11

per unit

Fixed selling and administrative expenses

$ 4,250,000

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.

Sims Company began operations on January 1. Its cost and sales information for this year follow. 1. Prepare an income statement for the year using variable 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. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year using variable costing