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 $ $10$

Direct labor $ $4$

Variable manufacturing overhead $ $1$

Variable selling and administrative $ $1$

Fixed costs per year:

Fixed manufacturing overhead $ $340,000$

Fixed selling and administrative $ $250,000$

During the year, the company produced $34,000$ units and sold $16,000$ units. The selling price of the company$$s product is $$54$ per unit.

Required:

Assume the company uses absorption costing:

Compute the unit product cost.

Prepare an income statement for the year.

Assume the company uses variable costing:

Compute the unit product cost.

Prepare an income statement for the year.