Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow. Income Statements (Absorption conting) Year 1 Year 2 Sales ($46 per unit) $ 966,000 $ 2,254,000 Coat of goods sold ($31 per unit) 651,000 1,519,000 Cross profit 315,000 735,000 Selling and administrative expenses 281,000 309,000 Income $ 34,000 $426,000 Additional Information a. Sales and production data for these first two years follow, Units Units produced Units sola Year 1 35,000 21,000 Year 2 35,000 49,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($315,000/35,000 units) Total product cost per unit $ 12 5 5 9. $ 31 c. Selling and administrative expenses consist of the following Selling and Administrative Expenses Variable selling and administrative (51 per unit sold) Fixed selling and administrative Total Year 1 $ 21,000 260.000 $ 281,000 Year 2 $ 49,000 260,000 $ 309,000 c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Variable selling and administrative ($1 per unit sold) Fixed selling and administrative Total Year 1 $ 21,000 260,000 $ 281,000 Year 2 $ 49,000 260,000 $ 309,000 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costing) Year 1 Year 2 Income (Loss)