Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costs per uniti Manufacturing: Direct materials $ 11 Direct labor $ 3 Variable manufacturing overhead. Variable selling and administrative $ 1 $ 1 Fixed manufacturing overhead $330,000 $240,000 Fixed costs per year: Fixed selling and administrative During the year, the company produced 30,000 units and sold 23,000 units. The selling price of the company's product is $43 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.