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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 14 8 2 2 $ 250,000 $ 160,000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is $47 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Unit product cost $ 38 b. Prepare an income statement for the year. Lynch Company Absorption Costing Income Statement Sales Cost of goods sold Gross margin Total selling and administrative expense Net operating income $ 0 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Variable expenses: Fixed expenses: $ 0