Lynch Company manufactures and sells a single product The following costs were incurred during the company's rst year of operations: Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead $368,660 Fixed selling and administrative $2?0,BB iFi-'EFO'LFO'EFO I'IIIU'IN During the year, the company produced 36,000 units and sold 18,000 units. The selling price of the company's product is $55 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