iz Saved Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 2017 $1,104,000 $2,024,000 744,000 1,364,000 360,000 660,000 294,000 339,000 $ 66,000 $ 321,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 2017 34,000 34,000 24,000 44,000 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following. $ 6 Direct materials Direct labor Variable overhead Fixed overhead (9340,000/34,000 units) Total product coat per unit 10 $31 c. Selling and administrative expenses consist of the following. Variable selling and administrative expenses ($2.25 par unit) 2016 2017 $ 54.0091 c. Selling and administrative expenses consist of the following. Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2016 2017 $ 54,000 $ 99,000 240,000 240,000 $294,000 $339,000 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2016 2017 Sales Less: Variable costs Direct materials Direct labor Variable overhead Variable selling and administrative expenses Less: Fixed expenses Fixed overhead Fixed selling and administrative costs Net Income (1055)