Check my work mode: This shows what is correct or incorrect for the work you have completed so 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 $12 $5 $1 $1 $360,000 $270,000 During the year, the company produced 36,000 units and sold 18,000 units. The selling price of the company's product is $55 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. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2A Red 28 Prepare an income statement for the year. Assume that the company uses variable costing. Sales Variable expenses Indirect materials Indirect labor Lynch Company Variable Costing Income Statement 0000 S 216,000 90,000 $ 990.000 ( - < Prev 4 of 12 Next >