6 - Variable Costing Saved 3 6 Sims Company began operations on January 1. Its cost and sales information for this year follow. points eBook Hint Print References Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price. 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing. $35 per unit $55 per unit $20 per unit $ 8,000,000 per year $11 per unit $ 4,250,000 per year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) 100,000 units 70,000 units $ 350 per unit Sales $24,500,000 Less: Variable expenses Variable cost of goods sold $ 7,700,000 Variable selling and administrative expenses 770,000 8,470,000 Contribution margin 16,030,000 Less: Fixed expenses Fixed selling and administrative expenses Fixed overhead 4,250,000 8,000,000 Income 12,250,000 $ 3,780,000 3 6 points eBook Hint Print References Sims Company began operations on January 1. Its cost and sales information for this year follow. Direct materials: Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Units produced Units sold Sales price 1. Prepare an income statement for the year using variable costing. 2. Prepare an income statement for the year using absorption costing $35 per unit $ 55 per unit $20 per unit $8,000,000 per year $11 per unit $ 4,250,000 per year Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare an income statement for the year using absorption costing. SIMS COMPANY 100,000 units 70,000 units $ 350 per unit Income Statement (Absorption Costing) Sales $ 24,500,000 Cost of goods sold Gross profit 10,990,000 13,510,000 $ 13,510,000 < Required 1 Required 2 >