35 per unit 55 per unit 40 per unit Manufacturing costs Direct materials Direct labor Overhead costs Variable Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $6,600,000 per year) $ 775,000 $4,500,000 110,000 units 80,000 units 360 per unit $ 28,800,000 SIMS COMPANY Variable Costing Income Statement Sales Less: Variable costs | Direct materials $ 2,800,000 Variable overhead costs 3,200,000 Variable selling and administrative expenses ( 775,000 6,775,000 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative Fixed overhead costs TTTTTTT TTTTTTTT 1 O on on 1 XIII TI Net income (loss) SIMS COMPANY Absorption Costing Income Statement Net income (loss)