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

The following information applies to the questions displayed below.] Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow 2014 1,152,000 2,112,000 2015 Sales ($48 per unit) 792,000 1,452,000 Cost of goods sold ($33 per unit) 360,000 660,000 Gross margin Selling and administrative 294,000 339,000 expenses Net income $ 66,000 $ 321,000 Additional Information a.Sales and production data for these first two years follow. Units produced Units sold 2014 2015 34,000 34,000 24,000 44,000 b.Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $33 per unit product cost consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($340,000/34,000 9 10 10 units) Total product cost per unit c. Selling and administrative expenses consist of the following 2014 2015 Variable selling and administrative $54,000 $ 99,000 expenses ($2.25 per unit) Fixed selling and administrative 240,000 240,000 expenses 294,000 Total selling and administrative expenses $ $339,000