Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials Direct labor $40 per unit $ 60 per unit $ 30 per unit $ Variable overhead 7,000,000 per year Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 4,250,000 per year Units produced Units sold 100,000 units 70,000 units $350 per unit Sales price 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. Required Required 1 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Sales Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses Income (loss) 7,000,000 4,250,000 Required 1 $ 11 per unit $ $ 24,500,000 0 13,000,000 14,630,000 11,250,000 3,380,000 Required 2 > $

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