Required information [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 ($48 per unit) Cost of goods sold ($33 per unit) Gross margin Selling and administrative expenses $1,104,000 $2,064,000 759,000 1,419,000 345,000 645,000 296,750 341,750 $ 48,250 $ 303,250 Net income Additional Information a. Sales and production data for these first two years follow. 2017 2016 Units 33,000 33,000 produced Units sold 23,000 43,000 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $33 per unit product cost consists of the following. Direct materials Direct labor Variable overhead $ 6 9 Fixed overhead ($330,000/33,000 units) 10 $33 Total product cost per unit c. Selling and administrative expenses consist of the following. 2017 2016 Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses $ 51,750 $ 96,750 245,000 245,000 Total selling and administrative expenses $296,750 $341,750 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)