Question & Answer: 34 Dowell Company produces a single product Its income statements under absorption costing for its first two years of operation follow 2816 Part 2 of 2 Sales ($46 pe…..

34 Dowell Company produces a single product Its income statements under absorption costing for its first two years of operation follow 2816 Part 2 of 2 Sales ($46 per unit) Cost of goods sold ($31 per unit) Gross margin Selling and adinistrative expenses Net incone $1,e12,e0e $1,932,e0 682,000 1,302,eee 63e,896e 339,580 S 35,s00 s 299,500 294,506e 2 points Additionel Informetion eBook a Sales and production data for these first two years follow Prinz Units produced Units sold 2816 2017 32.998 32.9e 22,e 42,800 b. Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company’s $31 per unit product cost consists of the following Direct materials Direct 1abor variabie overhead Fixed ovwerhead (5328,988/32, 9ee units) iotal product cost per unst 5 b 13