during the company's first year of Lynch Company manufactures and sells a single product. The following costs were incurred operations: Variable costs per unit: Manufacturing 10 Direct materials Direct labor Variable manufacturing overhead Variable selling and adninistrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $385,000 $295,000 During the year, the company produced 35,000 units and sold 17,000 units. The selling price of the company's product is $58 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