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Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow Income Statement (Absorption Costine) Sales (546 per unit) Cost of goods sold (531 per unit) Gross profit Selling and administrative expenses Income Year 1 $920,000 620,000 300,000 170,000 $ 130,000 Year 2 $ 1,540,000 1,240,00 600,000 220,000 $ 380,000 Additional Information o. Sales and production data for these first two years follow. Units produced Units old Year 1 30,000 20,000 Year 2 30,000 40,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $31 per unit product cost using absorption costing consists of the following Direct materials Direct labor Variable overhead Fixed overhead ($100,000/30,000 units) Total product cost per unit 7 10 $31 c. Selling and administrative expenses consist of the following D 4212 Nav Selling and Administrative Expenses Variable selling and administrative ($2.50 per unit sold) Fixed selling and administrative Total Year 1 $ 50, eee 120.000 $ 178,000 Year ? $100,000 120,000 $ 220,000 Required: Prepare Income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) DOWELL Company Income Statements (Variable Costino) Year 1 Year 2 Sales $ 920.000 s 1840,000 Less Variable expenses Variable cost of goods sold Variable selling and administrative expenses Contribution margin Less Fixed expenses Fixed selling and administrative expenses Food overhead Income (Loss)