Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3 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. 2014 2015 Sales (S46 per unit) Cost of goods sold ($31 per unit) $1150,000 $ 2,070,000 775,000 1,395,000 Gross margin Selling and administrative expenses 375,000 288,750 675,000 323,750 Net income $ 86,250 $ 351,250 a. Sales and production data for these first two years follow. 2015 Units produced Units sold 2014 35,000 35,000 25,000 45,000 b. Variable cost per unit and total fixed costs are unchanged during 2014 and 2015. The company's $31 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($350,000135,000 units) 8 10 $ 31 Total product cost per unit