Lynch Company manufactures and selils 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 S 15 Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative $ 286,000 $ 196,000 During the year, the company produced 26,000 units and sold 22 000 units The selling price of the company's product is $46 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 Lynch Company Absorption Costing Income Statement 2 Assume that the company uses variable costing a Compuse the unit produci cost h Prepare an income statement for the year