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 ($50 per unit) $ 1, 350, 000 $ 2,550, 000 Cost of goods sold ($39 per unit) 1, 053, 000 1, 989, 000 Gross profit 297,000 561, 000 Selling and administrative expenses 247,000 271, 000 Income $ 50,000 $ 290, 000 Additional Information a. Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced 39,000 39,000 Units sold 27,000 51,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $39 per unit product cost using absorption costing consists of the following. Direct materials $ 16 Direct labor 9 Variable overhead Fixed overhead ($351, 000/39,000 units) Total product cost per unit $ 391:. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Year 1 Year 2 Variable selling and administrative ($1 per unit sold) $ 27,333 $ 51,333 Fixed selling and administrative 223,333 223,333 Total $ 247,333 $ 221,333 Required: Prepare income statements for each of these two years under variable costing. {Loss amounts should be entered with a minus sign} __ assvan-ameexpenses Income (Loss) The company sells its product for $160 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,000 units and (b) produces 2,700 units and sells 2,000 units. Contribution using variable costing (a) 2,000 Units Produced and (b) 2,700 Units Produced 2,000 Units Sold and 2,000 Units Sold Variable expenses Contribution margin