Compute the unit product cost. Assume the company uses variable costing Prepare an income statement for the year. Assume 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 Sompany produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 per unit. Required: 1. Assume the company uses absorption costing: a. Compute the unit product cost. b. Prepare an income statement for the year. 2. Assume the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year