Exercise 6-3 Income reporting under absorption costing and variable costing LO P2 Sims Company, a manufacturer of tablet computers, began operations on January 1, 2017. Its cost and sales information for this y follows Manufacturing costs Direct materials Direct labor Overhead costs for the year 35 per unit 55 per unit $2,200,e80 $8,800,0e0 Variable overhead Fixed overhead Selling and administrative costs for the year Variable Fixed 775,000 $4,250,000 Production and sales for the year Units produced Units sold Sales price per unit 110,000 units 80,000 units $360 per unit 1. Prepare an income statement for the year using variable costing 2. Prepare an income statement for the year using absorption costing 3. Under what circumstance(s) is reported income identical under both absorption costing and variable costing