1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.)

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow 2016 2017 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income $1,058,000 $1,978,000 713,000 1,333,000 645,000 352,500 $ 42,500 $ 292,500 345,00e 302,508 Additional Information a. Sales and production data for these first two years follow 2016 33,000 33,000 23,000 43,000 2017 Units produced Units sold b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following