Dowell Company produces a single product. Its income statement under absorption costing for its first two years of operation follow.

Additional Information a. Sales and production data for these first two years follow. 2012 30,000 30,000 20,000 40,000 2013 Units produced Units sold b. Varlable cost per unlt and total fixed costs are unchanged during 2012 and 2013. The compar product cost consists of the following. Direct materials Direct labor Varlable overhead Flxed overhead ($300,000/30,000 units) 9 10 $ 31 Total product cost per unlt c. Selling and administrative expenses consist of the following. 2012 2013 Varlable sellilng and administrative ($2.5 per unit) Fixed selling and administrative S 50,000 $ 100,000 240,000 240,000 Total selling and administrative $ 290,000 340,000