Required information 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. Sales ($44 per unit) Cost of goods sold ($29 per unit) Gross margin Selling and administrative expenses Net income 2019 2018 $968,000 $1,848,000 638,000 1,218,000 330,000 630,000 289,000 329,000 $ 41,000 $ 301,000 Additional Information a. Sales and production data for these first two years follow. Units produced Units sold 2019 2018 32,000 32,000 22,000 42,000 b. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $29 per unit product cost consists of the following. Direct materials Direct labor Variable overhead Fixed overhead ($320,000/32,000 units) Total product cost per unit $5 9 5 10 $29