PULC Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income $920,000 $1,840,000 620,000 1,240,000 300,000 600,000 290,000 340,000 $ 10,000 $ 260,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2018 30,000 30,000 20,000 40,000 2019 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. 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) Total product cost per unit $ 5 9 7 10 $31 c. Selling and administrative expenses consist of the following. 2018 2019 Variable selling and administrative expenses ($2.50 per unit) Fixed selling and administrative expenses Total selling and administrative expenses $ 50,000 $100,000 240,000 240,000 $290,000 $340,000 Sales Answer is not complete. DOWELL Company Variable Costing Income Statements 2018 2019 $ 920,000 $ 1,840,000 Less: Variable costs Direct labor 180,000 200,000 Direct materials 100,000 360,000 Variable overhead 140,000 280,000 Variable selling and administrative expenses 50,000 100,000 Total variable costs Contribution margin 470,000 940,000 450,000 900,000 Less: Fixed expenses Fixed overhead 300,000 300,000 Fixed selling and administrative costs 240,000 240,000 Total fixed expenses Net income (loss) 540,000 540,000