Dowell Company produces a single product. Its Income statements under absorption costing for Its first two years of operation follow 2014 2015 Sales ($46 per unit) Cost of goods sold ($31 per unit) $ 966,000 $1,886,000 651,000 1,271,000 Gross margin Selling and administrative expenses 315,000 287,250 615,000 332,250 Net Income $ 27,750 $ 282,750 Additional Information a. Sales and production data for these first two years follow 2014 31,000 31,000 21,000 41,000 2015 Units produced Units sold b. Varlable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following Direct materlals Direct labor Varlable overhead Fixed overhead ($310,000/31,000 units) $ 6 8 7 10 Total product cost per unlt $ 31 c. Selling and administrative expenses consist of the following 2014 2015 Varlable selling and administrative expenses ($2.25 per unit) FIxed selling and administrative expenses 47,250 $ 92,250 240,000 240,000 Total selling and administrative expenses $ 287,250 $ 332,250