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 ($49 per unit) $ 1,323, eee $ 2,401, eee Cost of goods sold ($37 per unit) 999,000 1,813, eee Gross profit 324, eee 588, Bee Selling and administrative expenses 264, eee 398, eee Income $ 60,000 $ 280, eee Additional Information .. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 38,888 27,000 Year 2 38,000 49,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $37 per unit product cost using absorption costing consists of the following. $ 15 Direct materials Direct labor Variable overhead Fixed overhead ($304,800/38,eee units) Total product cost per unit 6 8 $ 37 c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Variable selling and administrative ($2 per unit sold) Fixed selling and administrative Total Year 1 $ 54,800 210, eee $ 264,800 Year 2 $ 98,00 210,000 $ 308,888 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus slgn.) DOWELL Company Income Statements (Variable Costing) Year 1 Year 2 Income (Loss)