Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow 2014 Sales ($46 per unit) Cost of goods sold ($31 per unit) $ 920,000 $ 1,840,000 620,000 1,240,000 Gross margin Selling and administrative expenses 300,000 275,000 600,000 310,000 Net income $25,000 $ 290,000 Additional Information a. Sales and production data for these first two years follow 2014 30,000 30,000 20,000 40,000 2015 Units produced Units sold b. Variable 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 materials Direct labor Variable overhead Fixed overhead ($300,000/30,000 units) 9 10 $ 31 Total product cost per unit