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 ($52 per unit) $ 1,508,000 $ 2,756,000 Cost of goods sold ($36 per unit) 1,044,000 1,908,000 Gross profit 464,000 848,000 Selling and administrative expenses 366,000 462,000 Income $ 98,000 $ 386,000 Additional Information Sales and production data for these first two years follow. Units Year 1 Year 2 Units produ

Units	Year 1	Year 2
Units produced	41,000	41,000
Units sold	29,000	53,000