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 $ 1C Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead Fixed selling and administrative 1 1 385,000 295,000 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. 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. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Variable expenses: Fixed expenses