a. Sales and production data for these first two years follow. Units Units produced Units sold Year 1 40,000 28,000 Year 2 40,000 52,000 b. Variable costs per unit and fixed costs per year are unchanged during these years. The company's $41 per unit product cost using absorption costing consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($400,000/40,000 units) Total product cost per unit $ 17 10 4 10 $ 41 c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses Variable selling and administrative ($3 per unit sold) Fixed selling and administrative Total Year 1 $ 84,000 150,000 Year 2 $ 156,000 150,000 $ 234,000 $ 306,000 Required: Prepare Income statements for each of these two years under variable costing. (Loss amounts should be entered with a minus sign.) Sales Less: Variable expenses DOWELL Company Income Statements (Variable Costing) Year 1 Year 2 $ 1,480,000 $ 2,652,000 476,000 884,000 280,000 520,000 112,000 208,000 84,000 156,000 Fixed overhead 952,000 1,768,000 476,000 884,000 Fixed overhead 550,000 550,000 Income (Loss)