29 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $ 13 8 00:22:56 $ 10 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 $3 $3 $ 352,000 262,000 During the year, the company produced 32,000 units and sold 27000 units. The selling price of the company's product is $56 per unit Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Unit product cost S 37 29 b. Prepare an income statement for the year 8 00:22:31 Lynch Company Absorption Costing Income Statement Sales $ 1,512,000 Beginning merchandise inventory 0 Gross margin 1,512.000 Cost of goods sold $ 1,512,000 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 00:25 Lynch Company Variable Costing Income Statement Variable expenses Fixed expenses