Compute the unit product cost. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses absorption costing. Prepare an income statement for the year. Assume that the company uses va Compute the unit product cost. Assume that the company uses variable costing Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 34,000 units and sold 16,000 units. The selling price of the company's product is $54 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