exercise 6-7 (algo) 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 $ 35 per unit direct labor $ 55 per unit variable overhead $ 40 per unit fixed overhead $ 6,300,000 per year variable selling and administrative expenses $ 11 per unit fixed selling and administrative expenses $ 4,250,000 per year units produced 105,000 units units sold 75,000 units sales price $ 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.