Exercise 19-7 (Static) Income reporting under absorption costing and variable costing LO P2 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. $40 per unit $60 per unit $ 30 per unit $ 7,000,000 per year $ 11 per unit $ 4,250,000 per year 100,000 units 70,000 units $350 per unit Required 1 Required 2 Prepare an income statement for the year using variable costing. SIMS COMPANY Income Statement (Variable Costing) Income (loss) SIMS COMPANY Income Statement (Absorption Costing)