Answer the following question ( Lynch Company manufactures and sells a single product. The following costs were company's first year of operations: Variable costs per unit: Manufacturing Direct materials. incurred during the S9 $4 Variable selling and administrative . . . . . . . .. Fixed costs per year: $300,000 Fixed manufacturing overhead. 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: I. 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. 3. Explain the difference between variable costing and absorption costing net operating income