Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $1,058,000 i,978,000 713,000 1,333,000 645,000 345,000 291,750 336,750 53,250 $ 308,250 Net income Additional Information a. Sales and production data for these first two years follow. 2016 2017 Units produced 33,000 43,000 33,000 23,000 Units sold b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following. Direct materials 6 Direct labor Variable overhead 6 Fixed overhead ($330,000/33,000 units) 10 $31 Total product cost per unit Selling and administrative expenses consist of the following. C. c. Selling and administrative expenses consist of the following. 2016 2017 Variable selling and administrative expenses ($2.25 per unit) Fixed selling 96,750 51,750 240,000 240,000 and administrative expenses $291,750 $336,750 Total selling and administrative expenses 2. What are the differences between the absorption costing income and the variable costing income for these two years? (Loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2016 2017 Variable costing income (loss) Absorption costing income (loss)