Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Year 2 Income Statements (Absorption Costing) Sales ($56 per unit) Cost of goods sold ($44 per unit) Gross profit Selling and administrative expenses Year 1 $ 1,792,000 1,408,000 384,000 298,000 $3,248,000 2,552,000 696,000 402,000 $ 294,000 Income $ 86,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 45,000 32,000 Year 2 45,000 58,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $44per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($495,000/45,000 units) Total product cost per unit $ 15 15 3. 11 $ 44 c. Selling and administrative expenses consist of the following Year 1 Selling and Administrative Expenses Variable selling and administrative ($4 per unit sold) Fixed selling and administrative $ 128,000 170,000 $ 298,000 Year 2 $ 232,000 170,000 S 402,000 Total Required: Prepare income statements for each of these two years under varlable costing (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costing) Year 1. Year 2 Sales Less: Variable expenses Fixed selling and administrative expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Plus: Fixed expenses Fixed overhead Fixed selling and administrative expenses Fixed overhead Income (Loss) Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Year 2 Income Statements (Absorption Costing) Sales ($56 per unit) Cost of goods sold ($44 per unit) Gross profit Selling and administrative expenses Year 1 $ 1,792,000 1,408,000 384,000 298,000 $3,248,000 2,552,000 696,000 402,000 $ 294,000 Income $ 86,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 45,000 32,000 Year 2 45,000 58,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $44per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($495,000/45,000 units) Total product cost per unit $ 15 15 3. 11 $ 44 c. Selling and administrative expenses consist of the following Year 1 Selling and Administrative Expenses Variable selling and administrative ($4 per unit sold) Fixed selling and administrative $ 128,000 170,000 $ 298,000 Year 2 $ 232,000 170,000 S 402,000 Total Required: Prepare income statements for each of these two years under varlable costing (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costing) Year 1. Year 2 Sales Less: Variable expenses Fixed selling and administrative expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Plus: Fixed expenses Fixed overhead Fixed selling and administrative expenses Fixed overhead Income (Loss)