Lynch Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations:

Variable costs per unit:
Manufacturing:
Direct materials		$6
Direct labor		$9
Variable manufacturing overhead		$3
Variable selling and administrative		$4
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 companys product is $50 per unit.

Prepare an income statement for the year. Assume that the company uses variable costing.