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 (\$54 per unit) Cost of goods sold (\$4e per unit) Gross profit Selling and administrative expenses Income Additionel Information o. 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 $40 per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ( $387, ee/43, 10 e units) Total product cost per unit $13 13 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 slgn.)