1 value: 2.00 points Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per unit: Manufacturing: Direct materials 14 Direct labor 3 $ Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative 1 1 $290,000 $200,000 During the year, the company produced 29,000 units and sold 22,000 units. The selling price of the company's product is $42 per unit. A A LA LA 2. Assume that the company uses variable costing: a. Compute the unit product cost $ Unit product cost 18 b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Sales $ 924,000 Variable expenses: Variable cost of goods sold $ 396,000 Variable selling and administrative expense 22,000 418,000 Contribution margin 506,000 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense Net operating income $ 506,000