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# Required information [The following information applies to the questions displayed below.] Dowell Company produces a single...

###### Question:

Required information

[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.

 2018 2019 Sales ($48 per unit)$ 1,152,000 $2,112,000 Cost of goods sold ($33 per unit) 792,000 1,452,000 Gross margin 360,000 660,000 Selling and administrative expenses 282,000 317,000 Net income $78,000$ 343,000

Additional Information

1. Sales and production data for these first two years follow.
 2018 2019 Units produced 34,000 34,000 Units sold 24,000 44,000
1. Variable cost per unit and total fixed costs are unchanged during 2018 and 2019. The company's $33 per unit product cost consists of the following.  Direct materials$ 5 Direct labor 8 Variable overhead 10 Fixed overhead ($340,000/34,000 units) 10 Total product cost per unit$ 33
1. Selling and administrative expenses consist of the following.
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