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 ($63 per unit) $ 2,268,000 $ 4,284,000 Cost of goods sold ($51 per unit) 1,836,000 3,468,000 Gross profit 432.000 816.000 Selling and administrative expenses 298,000 394,000 Income $ 134.000 $ 422,000 Additional Information a. Sales and production data for these rst two years follow. Units Year 1 Year 2 Units produced 52,000 52,000 Units sold 36,000 68,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $51 per unit product cost using absorption costing consists of the following. Direct materials $ 15 Direct labor 22 Variable overhead 4 Fixed overhead ($520,000/52,000 units) 10 Total product cost per unit $ 51 c. Selling and administrative expenses consist of the following. n,11,-,,,, ,,,,. .J,,,-,,,-,i,,iii-,,, -,,,,,,,,, \"iii .- u,,,, -. c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Year 1 Year 2 Variable selling and administrative ($3 per unit sold) $ 108,000 $ 204,000 Fixed selling and administrative 190,000 190,000 Total $ 298,000 $ 394,000 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Income (Loss)