Required information The following information applies to the questions displayed below Dowell Company produces a single product is income statements under absorption costing for its first two years of operation follow $1,012,000 $1,932,000 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income $ 41,000 $300,000 Additional Information a. Sales and production data for these first two years follow Units produced Units sold 2016 32,000 22,000 2017 32,000 42.000 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 Direct materials Direct labor Variable overhead Fixed overhead ($320,00/32,000 units) Total product cost per unit C. Selling and administrative expenses consist of the following 245.000 265.000 Variable selling and adeinistrative expenses (52 per unit) Fixed selling and administrative expenses Total selling and dinistrative expenses 2. What are the differences between the absorption costing income and the variable costing income for these two years loss amounts should be entered with a minus sign.) DOWELL COMPANY Reconciliation of Variable Costing Income to Absorption Costing Income 2016 2017 Variable costing income foss) Absorption costing income foss)