1 DO Dowell Company produces a single product. It income statements under absorption conting for its first two years of operation DEPLINI TERE Sale 20,000 31.000.000 (1 per i 620.610 1.240.000 Growe profit 300,000 00.00 190.000 Inom 3130.000 33,00 Aditional Information a Sales and production data for these first two years follow 1 Taite predmet Ter 30,000 10,000 10,000 40.000 b. Variable costs per unit and fined costs per year are unchanged during these years. The company's Sperut duct costsing absorption costing consists of the following Direct teiste Direct Istor Vable serta Tiend overhead 10.00/30,010 mi) Total product perit 10 31 c. Selling and administrative expenses consist of the following MORING Varise selling and te 12.30 to Yine singurative Total 19.00 120.000 190,00 8.100.000 16.30 1 Required: Prepare Income statements for each of these two years under varloble costing (loss amounts should be entered with a minus sign) DOWELL Company Income Statements Valable Casting Year! Year 2 Sales $ 020,000 5 1,040,000 Los Variable expenses Variable cost of goods sold Variable selling and administrative expenses + 450.000 900,000 Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative expenses 300,000 120,000 300,000 120.000 Income (Loss) $ 30,000 $ 480,000 lupare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) tentes DOWELL Company Income Statements (Vrtable Costing Year Year Salas $ 920,000 5 1,840,000 Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses 450,000 900,000 Fixed overhead Fixed selling and administrative expenses 300.000 120,000 300 000 120.000 Sales $ 30.000 480,000 Variable cost of goods sold Variable selling and administrative expenses