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 ($62 per unit) $ 1,860,000 $ 4,464,000 Cost of goods sold ($49 per unit) 1,470,000 3,528,000 Gross profit 390,000 936,000 Selling and administrative expenses 275,000 317,000 Income $ 115,000 $ 619,000 Additional Information Sales and production data for these first two years follow. Units Year 1 Year 2 Units produced 51,000 51,000 Units sold 30,000 72,000 Variable costs per unit and fixed costs per year are unchanged during these years. The company's $49 per unit product cost using absorption costing consists of the following. Direct materials $ 14 Direct labor 21 Variable overhead 5 Fixed overhead ($459,000/51,000 units) 9 Total product cost per unit $ 49 Selling and administrative expenses consist of the following. Selling and Administrative Expenses Year 1 Year 2 Variable selling and administrative ($1 per unit sold) $ 30,000 $ 72,000 Fixed selling and administrative 245,000 245,000 Total $ 275,000 $ 317,000 Required: Prepare income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.)