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.)

2.	What are the differences between the absorption costing income and the variable costing income for these two years? (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. 2014 2015 Sales ($44 per unit 924,000 1,804,000 Cost of goods sold ($29 per unit) 609,000 1189,000 315,000 615,000 Gross margin Selling and administrative expenses 292,250 337250 22750 277750 Net income Additional Information a. Sales and production data for these first two years follow. 2014 2015 Units produced 31,000 31,000 Units sold 21,000 41,000 b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $29 per unit product cost consists of the following. 5 Direct materials Direct labor Variable overhead Fixed overhead ($310,000/31,000 units) 10 29 Total product cost per unit c. Selling and administrative expenses consist of the following. 2014 2015 Variable selling and administrative expenses ($2.25 per unit) 47,250 92,250 Fixed selling and administrative expenses 245,000 245,000 292,250 337,250 Total selling and administrative expenses