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 $ 11 Direct labor $ 3 Variable manufacturing overhead $ 1 Variable selling and administrative $ 1 Fixed costs per year: Fixed manufacturing overhead $ 339,668 Fixed selling and administrative $ 240,608 During the year, the company produced 30,000 units and sold 23,000 units. The selling price ofthe company's product is $43 per unit. Requhed: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. to. Prepare an income statement for the year. 2. Assume that the company uses variable costing: a. Compute the unit product cost. to. Prepare an income statement for the year. Req 1A Req 1B Req 2A Req 2B Compute the unit product cost. Assume that the company uses absorption costing. Unit product cost 26Sales 9 $ 939,000 9 Cost of goods sold 0 598,000 0 Gross margin 0 391,000 Selling and administrative expense 0 23,000 6 Net operating income 0 $ 308,000 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Compute the unit product cost. Assume that the company uses variable costing Unit product cost 15Sales 0 $ 1,000,000 9 Variable expenses: 0 Variable cost of goods sold a $ 345,000 0 Variable selling and administrative expense 0 23,000 0 358,000 632,000 0 $ 632,000