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

Income Statements (Absorption Costing)	Year 1	Year 2
Sales ($64 per unit)	$ 2,368,000	$ 4,416,000
Cost of goods sold ($53 per unit)	1,961,000	3,657,000
Gross profit	407,000	759,000
Selling and administrative expenses	308,000	436,000
Income	$ 99,000	$ 323,000

Additional Information

Sales and production data for these first two years follow.

Units	Year 1	Year 2
Units produced	53,000	53,000
Units sold	37,000	69,000

Variable costs per unit and fixed costs per year are unchanged during these years. The company's $53 per unit product cost using absorption costing consists of the following.

Direct materials	$ 16
Direct labor	23
Variable overhead	3
Fixed overhead ($583,000/53,000 units)	11
Total product cost per unit	$ 53

Selling and administrative expenses consist of the following.

Selling and Administrative Expenses	Year 1	Year 2
Variable selling and administrative ($4 per unit sold)	$ 148,000	$ 276,000
Fixed selling and administrative	160,000	160,000
Total	$ 308,000	$ 436,000

Required:

Prepare income statements for each of these two years under variable costing.

Note: Loss amounts should be entered with a minus sign.