3. Compute the break-even point in dollar sal EXERCISE 4-6 Variable and Absorption Costing Unit Product Costs and Income Statements L04-1, L04-2 Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: na magad Variable costs per unit: Manufacturing: $6 Direct materials $9 Direct labor... $3 Variable manufacturing overhead $4 Variable selling and administrative.. Fixed costs per year: Fixed manufacturing overhead. $300,000 Fixed selling and administrative $190,000 Sinus to me During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume that the company uses variable costing: SEOREX Compute the unit product cost. los b. Prepare an income statement for the year. SUS a