Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($46 per unit) 2018 2019 $920,000 $1,840,000 Cost of goods sold ($31 per unit) Gross margin 620,000 1,240,000 300,000 600,000 Selling and administrative expenses Net income $ 10,000 $ 260,000 290,000 340,000 Additional Information a. Sales and production data for these first two years follow. 2018 2019 Units produced Units sold 30,000 30,000 20,000 40,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) Total product cost per unit $ 5 9 7 10 $31 c. Selling and administrative expenses consist of the following. 2018 2019 PA ARA