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 $9,200,000 $ 1,840,000 Sales Less: Variable expenses Variable selling and administrative expenses Variable cost of goods sold Contribution margin Less: Fixed expenses Fixed selling and administrative expenses Fixed overhead Income (Loss) 100,000 100,000