Year 1 Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow Income Statements (Absorption conting) Year 2 Sales ($52 per unit) $ 1,508,000 $ 2,756,000 Cont of goods sold (536 per unit) 1,044,000 1,908,000 Gross profit 464,000 348,000 Selling and administrative expenses 366,000 462,000 Income $ 98,000 $ 386,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 41,000 29,000 Year 2 41,000 53,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $36 per unit product cost using absorption costing consists of the following. 11 11 Direct materials Direct labor Variable overhead Fixed overhead (6451,000/41,000 unit.) Total product cost per unit 11 S36 c. Selling and administrative expenses consist of the following Selling and Administrative Expenses Variable selling and administrative (64 per unit sold) Fixed selling and administrative Total Year 1 $ 116,000 250.000 366,000 Year 2 212.000 250,000 0.462.000 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 Costing) Year 1 Year 2 Income (Loss)