Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow 2014 2015 Sales ($44 per unit) Cost of goods sold ($29 per unit) $ 1,012,000 $ 1,892,000 667,000 1,247,000 Gross margin Selling and administrative expenses 345,000 291,750 645,000 336,750 Net income $ 53,250 308,250 Additional Information a. Sales and production data for these first two years follow 2014 33,000 33,000 23,000 43,000 2015 Units produced Units sold b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $29 per unit product cost consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($330,000/33,000 units) 8 5 10 Total product cost per unit $29