Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Sales ($46 per unit) Cost of goods sold ($31 per unit). Gross margin Selling and administrative expenses Net income 2018 2019 $1,058,000 $1,978,000 713,000 1,333,000 345,000 645,000 286,000 326,000 $ 59,000 $ 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2018 2019 33,000 33,000 23,000 43,000 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 ($330,000/33,000 units) Total product cost per unit $ 5 9 7 10 $31 |