Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($48 per unit) $1, 056, 000 $2, 016, 090 Cost of goods sold ($33 per unit) 726, 900 1, 386, 090 Gross margin 330, 000 630, 900 Selling and administrative expenses 294, 500 339, 500 Net income $ 35, 500 $ 290, 500 Additional Information a. Sales and production data for these first two years follow. 2016 2017 Units produced 32, 000 32, 090 Units sold 22, 090 42, 900b. Variable cost per unit and total fixed costs are unchanged during 2316 and 2017. The company's $33 per unit product cost consists of the following. U1 Direct materials 5 Direct labor Variable overhead Fixed overhead [$323,333f32,333 units) 1 Total product cost per unit IECOLD in Lo Lo c. Selling and administrative expenses consist of the following. 2316 231? Variable selling and administrative expenses [$2.25 per unit} $ 43,533 $ 34,533 Fixed selling and administrative expenses 245,333 245,333 Total selling and administrative expenses $294,533 $339r533 K 1. Complete income statements for the company for each of its first two years under variable costing. {Loss amounts should be entered with a minus sign} Sales ess: Variable costs 4':- N H H H {D l Direct materials Direct labor Variable overhead Variable selling and administrative expenses E 5 Total variable costs Contribution margin I.3 I IJ'D I.g3 g g E as ea Less: Fixed expenses Fixed overhead Fixed selling and administrative costs HI HE 5