Dowell Com operation follow pany produces a single product Its income statements under absorption costing for its first two years of Sales ($44 per unit) cost of goods 01d ($29 per unit) Gross margin Selling and administrative expenses $1,056,000 $1,936,000 696, 000 1,276,000 660,000 317,000 $ 78, 000 343,000 360,000 282,000 Additional Information a. Sales and production data for these first two years follow 2016 34,000 34,000 24,000 44,000 2017 Units produced Units sold b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017 The company's $29 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($340,000/34,000 units) Total product cost per unit 10 $29