A company produces one product. Its income statement using the absorption (traditional) costing method for its first two years of operation follows: Income Statement Absorption Costing 2020 2021 Sales $1,250,000 $1,750,000 Cost of 650,000 910,000 Goods Sold Gross Margin 600,000 840,000 Selling and Administrative Expenses 650,000 670,000 Net Income $ (50,000) $ 170,000 Additional Information: Sales and production: 2020 2021 Units 30,000 30,000 produced Units 25,000 35,000 sold Its variable cost per unit and total fixed costs are unchanged during 2020 and 2021. Its $26 per unit product cost consists of the following: Direct Materials Direct Labor $3 Variable Overhead 1 2 Fixed Overhead 20 ($600,000/30,000 units) Total Product Cost per Total Product Cost per $26 Unit Its selling and administrative expenses consist of the following: 2020 2021 Variable selling and administrative $50,000 $70,000 expenses ($2/unit) Fixed selling and administrative expenses Total selling and administrative expenses 600,000 600,000 $650,000 $670,000 Prepare this company's income statements under variable costing (Contribution Margin format) for each of its first two years