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: Ma Direct ng rials 12 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative 2 $248,000 $158,000 During the year, the company produced 31,000 units and sold 21,000 units. The selling price of the company's product is $44 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. XAnswer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 2A Req 1A Req 1B Req 2B Prepare an income statement for the year. Assume that the company uses absorption costing Lynch Company Absorption Costing Income Statement $ 924,000 Sales 441,000 X Cost of goods sold Gross margin 483,000 42,158X Selling and administrative expense $ 440,842 Net operating income Req 1A Req 2A XAnswer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req 1A Req 2A Req 2B Req 1B Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement $ 924,000 Sales Variable expenses: $252,000 X Variable cost of goods sold 42,000 Variable selling and administrative expense 294,000 Contribution 630,000 Fixed expenses: 248,000 Fixed manufacturing overhead 158,000 Fixed selling and administrative 406,000 224,000 Net operating income