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: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Tixed costs per year Fixed manufacturing overhead Fixed selling and administrative $ $ $ $ 12 7 2 2 $248,000 $158,000 ces 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 costag: 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