Problem 19-1A (Static) Variable costing income statement for two consecutive years LO P2 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 Year 2 Sales ($46 per unit) $ 920,000 $ 1,840,000 Cost of goods sold ($31 per unit) 620,000 1,240,000 Gross profit 300,000 600,000 Selling and administrative expenses 170,000 220,000 Income $ 130,000 $ 380,000 Additional Information Sales