Dowell compan produces a single product. Its income statementss under Absorption costing for its first two years of operation follow

Dowell Company produces a single product. Its Income statements under absorption costing for Its first two years of operation follow 2014 2015 Sales ($46 per unit) Cost of goods sold ($31 per unit) $ 1,012,000 $ 1,932,000 682,000 1,302,000 Gross margin Sell ing and adminlstrative expenses 330,000 284,000 630,000 324,000 Net Income $46,000 $ 306,000 Additional Information a. Sales and production data for these first two years follow. 2014 32,000 32,000 22,000 42,000 2015 Units produced Units sold b. Varlable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following Direct materlals Direct labor Varlable overhead Flxed overhead ($320,000/32,000 units) 9 10 Total product cost per unit $ 31 c. Selling and administrative expenses consist of the following 2014 2015 Varlable selling and administrative expenses ($2 per unit) 44,000 $ 84,000 240,000 240,000 Fixed selling and administrative expenses Total selling and administrative expenses $ 284,000 $324,000