10 Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Income statements Absorption conting) Year 1 Year 2 Sales (546 per unit) $920,000 $ 1.040,000 cout of goods sold (531 per unit) 420.000 1.240.000 GE0% profit 300,000 600,000 Selling and administrative expenses 170.000 220.000 Income $ 130,000 $380.000 point .000 Additional Information a. Sales and production data for these first two years follow Unita Units produced Units sold Year 1 30.000 20.000 Year 2 30,000 40.000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead (5300,000/30,000 units) Total product cost per unit 55 9 7 10 c Selling and administrative expenses consist of the following. c. Selling and administrative expenses consist of the following Selling and Administrative Expenses Variable selling and administrative ($2.50 per unit sold) Fixed selling and administrative Total Year 1 $50,000 120,000 $ 170.000 Year 2 $100,000 120,000 $ 220,000 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costing) Year 1 Year 2 Income (L08)