Required Informatlon The following Information apples 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 Net income $1,152,000 $2,112,000 792,000 1,452,000 660,000 344,000 $ 61,000 $316,000 360,000 299,000 Additional Information a. Sales and production data for these first two years follow 2016 34,000 34,000 24,000 44,000 2017 Units produced Units sold b. Varlable 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 Fixed overhead ($340,000/34,000 units) Total product cost per unit 10 $33 c. Selling and administrative expenses consist of the following 2016 2017 Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses Total selling and administrative expenses S 54,000 99,000 245,000 245,000 $299,000 $344,000 1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a mlnus sign.) DOWELL Company Variable Costing Income Statements 2016 2017 Sales 1.152,000S 2,112,000 ess: Cost of goods sold Direct materials Direct labor Variable overhead Variable selling and administrative expenses 99,000 54,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative costs Net income (loss) 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 Fixed overhead ($340,000/34,000 units) Total product cost per unit S 5 9 9 10 S33 c. Selling and administrative expenses consist of the following 2016 2017 Variable selling and administrative expenses ($2.25 per unit) Fixed selling and administrative expenses Total selling and administrative expenses S 54,000 99,000 245,000 245,000 $299,000 $344,000 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.) COMPA Reconciliation of Variable Costing Income to Absorption Costing Income 2017 2016 Variable costing income (loss) Add: Fixed overhead in ending inventory ess: Fixed overhead in beginning inventory Absorption costing income (loss)