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 $ 12 Direct labor 3 6 Variable manufacturing overhead 5 1 Variable selling and administrative s 1 Fixed costs per year: Fixed manufacturing overhead $ 308,000 Fixed selling and administrative $ 218,000 During the year. the company produced 28,000 units and sold 15,000 units. The selling price of the company's product is $56 per unit. Required: 'I. 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