Sales ($ 46 per unit) Cost of goods sold ($31 per unit Gross margin Selling and administrative expenses Net income 20162017 $1,058,000 $ 1, 978, 000 713,000 1,333,000 345,000 645,000 286,000 326, 000 $ 59,000 319,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 2017 33,000 33,000 23,000 43,000 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 (\$330,000/33,000 units) Total product cost per unit 8 7 10 $31 . Selling and administrative expenses consist of the following. 2016 2017

2016 2017 Variable selling and administrative expenses ($2 per unit) $ 46, 000 $ 86, 000 Fixed selling and administrative expenses 240,000 240, 000 Total selling and administrative expenses $286, 000 $326, 000 blem 19-1A Part 1 mplete income statements for the company for each of its first two years under variable costing. (Loss amounts should be ed with a minus sign.) DOWELL Company Variable Costing Income Statements 2016 2017 $ 1,058,000 $ 1,978,000 Variable costs rect materials 138,000 rect labor 184,000 344,000 riable overhead 161,000 riable selling and administrative expenses 46,000 variable costs 529,000 344,000 ribution margin Fixed expenses red overhead 330,000 330,000