Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow. 2014 2015Sales ($46 per unit) $ 1,104,000 $ 2,024,000Cost of goods sold ($31 per unit) 744,000 1,364,000Gross margin 360,000 660,000Selling and administrative expenses 293,000 333,000Net income $ 67,000 $ 327,000Additional Informationa. Sales and production data for these first two years follow. 2014 2015Units produced 34,000 34,000Units sold 24,000 44,000b. 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 $5Direct labor 8Variable overhead 8Fixed overhead ($340,000/34,000 units) 10Total product cost per unit $31c. Selling and administrative expenses consist of the following. 2014 2015Variable selling and administrative expenses ($2 per unit)$ 48,000 $88,000Fixed selling and administrative expenses 245,000 245,000Total selling and administrative expenses $ 293,000 333,0001. Complete income statements for the company for each of its first two years under variable costing.(Loss amounts should be entered with a minus sign.)2. What are the differences between the absorption costing income and the variable costing income for these two years?