Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 The following information applies to the questions displayed below. Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2016 2017 Sales ($44 per unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income $1,100,000 $1,9B0,000 725,000,305, 000 675, 000 295,000 335,000 $ B0,000 340,000 375, 000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 35,000 35,000 25,000 45, 000 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $29 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($350, 000/35, 000 units) Total produet cost per unit 10 $29 c. Selling and administrative expenses consist of the following. 2016 2017 Variable selling and administrative expenses ($2 per unit) Fixed selling and administrative expenses S 50,000 90,000 245,000 245,000 Total selling and administrative expenses $295, 000 $335, 000 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Variable Costing Income Statements 2016 2017 Net income (loss)