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 $ $5$

Variable manufacturing overhead $ $1$

Variable selling and administrative $ $1$

Fixed costs per year:

Fixed manufacturing overhead $ $385,000$

Fixed selling and administrative $ $295,000$

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.

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.