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 Net income $966,000 $1,886,000 651,000 1,271,000 615,000 342,508 $. 22,500 272,500 315,000 292,500 Additional Informetion a. Sales and production data for these first two years follow. Units produced Units sold 2016 31,000 31,000 21,000 41,000