Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year operations Variable costs per unit: Manufacturing Direct materials 10 4 Direct labor Variable manufacturing overhead 1 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead 231,000 Fixed selling and administrative 141,000 During the year, the company produced 21,000 units and sold 17,000 units. The selling price of the company's product is $40 per unit. Required: 1. Assume that the company uses absorption costing a. Compute the unit product cost. Unit product b. Prepare an income statement for the year. Lynch Company Absorption Costing Income Statement 2. Assume that the company uses variable costing: a. Compute the unit product cost. b. Prepare an income statement for the year