Year 2 Dowell Company produces a single product. Its Income statements under absorption costing for its first two years of operation follow. Income statements (Absorption costing) Year 1 Sales ($60 per unit) $ 1,920, eee $ 3,960,000 cost of goods sold ($45 per unit) 1,440, eee 2,970,000 Gross profit 480, eee 990,000 Selling and administrative expenses 338, eee 474,000 Income $ 142, eee $ 516,000 Additional Information a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 49,888 32,888 Year 2 49,000 66,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $45 per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($539,600/49,808 units) Total product cost per unit $ 12 19 3 11 $ 45 c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses variable selling and administrative ($4 per unit sold) Fixed selling and administrative Total Year 1 $ 128,000 210,000 $ 338,000 Year 2 $ 264,000 210,000 $ 474,000 Required: Prepare Income statements for each of these two years under varlable costing. (Loss amounts should be entered with a minus slgn.) Answer is not complete. DOWELL Company Income Statements (Variable Costing) Year 1 Sales $1,920,000 Less: Variable expenses Variable cost of goods sold Variable selling and administrative expenses 128,000 Year 2 $ 3.960.000 264,000 Income (Loss)