Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Income Statements (Absorption Costing) Sales ($60 per unit) Cost of goods sold ($45 per unit) Gross profit Selling and administrative expenses Income Additional Information a. Sales and production data for these first two years follow Year 2 $ 3,960,000 Year 1 $ 1,920,000 1,440,000 480,000 2,970,000 990,000 338,000 $142,000 474,000 $516,000 Units es Units produced Units sold Year 1 49,000 32,000 Year 2 49,000 66,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $45 per unit product cost using absorption costing consists of the following Direct materials. Variable overhead $12 Direct labor 19 3 Fixed overhead ($539,000/49,000 units) 11 Total product cost per unit $45 c. Selling and administrative expenses consist of the following Selling and Adeninistrative Expenses Variable selling and administrative ($4 per unit sold) Fixed selling and administrative. Total Required: Year 1 5 128,000 210,000 $330,000 Year 2 $264,000 210,000 $474,000 Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Income (Loss) DOWELL Company Income Statements (Variable Costing) Year 1 Year 2