[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. Sales ($ 46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and administrative expenses Net income 2016 $920,000 620,000 300,000 290,000 $ 10,000 2017 $1,840,000 1,240,000 600,000 340,000 $ 260,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2016 2017 30,000 30,000 20,000 40,000 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. 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 ($300,000/30,000 units) Total product cost per unit Tovu w c. Selling and administrative expenses consist of the following. Variable selling and administrative expenses ($2.50 per unit) Fixed selling and administrative expenses Total selling and administrative expenses 2016 2017 $ 50,000 $100,000 240,000 240,000 $ 290,000 $340,000 Required: 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 Sales 920.000 Less: Variable costs Variable overhead 420,000 Variable selling and administrative 50,000 expenses 2017 1.840.000 840,000 100,000 470,000 450,000 940,000 900,000 Total variable costs Contribution margin Less: Fixed expenses Fixed overhead Fixed selling and administrative costs 300,000 240,000 300,000 240,000 Total fixed expenses 540,000 540,000 $ 360,000 Net income (loss) (90,000)