4 Part 2 of 3 [The following information applies to the questions displayed below) Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow 2016 2017 Sales (546 per unit) cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net Income $1,104,000 $2,024,000 744,000 1,364,000 360,000 660.000 287,000 322,000 $ 73,000 $ 338.00 points Additional Information Additional inte a. Sales and production data for these first two years follow. produced 34,000 Unite produced Units sold . 34.000 ., 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 Direct materials Direct labor Variable overhead Fixed overhead (5340,000/34,000 unita) Total product cost per unit c. Selling and administrative expenses consist of the following Variable selling and administrative expenses (81.75 per unit) Fixed selling and administrative expenses 2016 $ 42.000 245,000 2017 73.000 245,000 Direct materials Direct labor Variable overhead Fixed overhead ($340,000/34,000 units) Total product cost per unit Part 2 of 2 points c. Selling and administrative expenses consist of the following. eBook Variable selling and administrative expenses ($1.75 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2016 2017 $ 42,000 $ 77,000 245,000 245,000 $287,000 $322,000 Print 2. What are the differences between the absorption costing income and the variable costing income for these two years? (L. amounts should be entered with a minus sign.) References DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2016 2017 Variable costing income (loss) Add: Fixed overhead in beginning inventory Less: Fixed overhead in beginning inventory Absorption costing income (loss)