7 operations 20 points Book He 10 Pr References Variable costs, per unit Hanufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per years Fixed manufacturing overhead Fixed selling and administrative $10 57 53 23 $300,000 $290,000 During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 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 a. Compute the unit product cost b. Prepare an income statement for the year. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Reg 2A Req25 Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement Sales $1,098,000 Cost of goods sold Gross margin (626,000) Seling and administrative expense