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 ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses $920,000 $1,840,000 1,240,000 600,000 335,000 620,000 300,000 290,000 10,000 $ Net income 265,000 Additional Information a. Sales and production data for these first two years follow. 2016 2017 Units produced Units sold 30,000 40,000 30,000 20,000 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. $ 4 Direct materials Direct labor Variable overhead 9 Fixed overhead ($300,000/30, 000 units) 10 Total product cost per unit $31 Selling and administrative expenses consist of the following C. 2016 2017 Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses $90,000 245,000 45,000 245,000 $290,000 $335,000 Total selling and administrative expenses ' 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 Sales Less: Cost of goods sold Less: Fixed expenses Less: Variable costs Plus: Cost of goods sold Net income (loss) ce