Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. Income Statements (Absorption Costing) Sales ($49 per unit) Cost of goods sold ($37 per unit) Gross profit Selling and administrative expenses Income Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 38,000 27,000 Year 1 $ 1,323,000 999,000 324,000 264,000 $ 60,000 Year 2 38,000 49,000 Year 2 $ 2,401,000 1,813,000 588,000 308,000 $ 280,000 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.

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Additional Information a. Sales and production data for these first two years follow. 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. Dowell Company produces a single product. its income statements under absorption costing for its first two years of operation follow. Additional Information a. Sales and production data for these first two years follow. 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 c. Selling and administrative expenses consist of the following. Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus si) DOWELL Company Income Statements (Variable Costing)