Exercise 19-3 Income reporting under absorption costing and variable costing P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2019. Its cost and sales information for this year follows. $40 per unit $60 per unit $30 per unit $7,000,000 (per year) 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 $770,000 $4,250,000 100,000 units 70,000 units $350 per unit 1. Prepare an income statement for the year using variable costing. Check in Variable costing income, $3.380.000 2. Prepare an income statement for the year using absorption costing