Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per units Manufacturing: Direct materials Direct labor Variable manufacturing overhead 13 Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses 320,000 $230,000 During the year, the company produced 32,000 units and sold 17,000 units. The selling price of the company's product is $53 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