Exercise 06-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows Manufacturing costs Direct materials Direct labor Overhead costs Variable 30 per unit 50 per unit 40 per unit $6,300,en (per year) Fixed Selling and administrative costs for the year Variable Fixed Production and sales for the year Units produced Units sold Sales price per unit $ 750,000 $5,000,000 105,000 units 75,000 units 360 per unit 1. Prepare an income statement for the year using variable costing 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 i Required 2 Prepare an income statement for the year using variable costing. $ 27,000,000 SIMS COMPANY Variable Costing Income Statement Sales Less: Variable costs Direct materials $ 2,250,000 Direct labor 3,750,000 Variable overhead costs Variable selling and administrative expenses 750,000 Total variable costs 6.750,000 $ 2,250,000 3,750,000 Direct materials Direct labor Variable overhead costs Variable selling and administrative expenses 750,000 6,750,000 Total variable costs Contribution margin Less: Fixed expenses Fixed selling and administrative costs Fixed overhead costs Variable selling and administrative expenses Net income (loss) Required 2 > Prepare an income statement for the year using absorption costing. SIMS COMPANY Absorption Costing Income Statement Net income (loss)