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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead $ 300,000 Fixed selling and administrative $ 190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $ unit. 56 $9 $ $.4 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 Prepare an income statement for the year. Assume that the company uses variable costing 100,000 Lynch Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold $360,000 Variable selling expense 80,000 560,000 1,000,000 (900,000) Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense $ 300,000 190.000 49,000 539.000 IS ||(1,439.000) 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 Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year Fixed manufacturing overhead $ 300,000 Fixed selling and administrative $ 190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $ unit. 56 $9 $ $.4 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 Prepare an income statement for the year. Assume that the company uses variable costing 100,000 Lynch Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold $360,000 Variable selling expense 80,000 560,000 1,000,000 (900,000) Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense $ 300,000 190.000 49,000 539.000 IS ||(1,439.000)