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 year follows. Manufacturing costs Direct materials 30 per unit Direct labor 50 per unit Overhead Costs for the year $2,100,000 $8,400,000 Fixed overhead Selling and administrative costs for the year Variable 750,000 $4,750,000 Production and sales for the year Units produced Units sold Sales price per unit 105,000 units 75,000 units 350 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