Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: 12 Variable conta per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ $ $ 3 3 $276,000 5186,000 During the year, the company produced 23,000 units and sold 19,000 units. The selling price of the company's product is $50 per unit Required: 1. Assume that the compony 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. Complete this question by entering your answers in the tabs below. 10 Answer is not complete. Complete this question by entering your answers in the tabs below. Req IA Req 1B Req ZA Req 2B Prepare an income statement for the year. Assume that the company uses absorption costing. Lynch Company Absorption Costing Income Statement Sales $ 950,000 Cost of goods sold (627,000) Gross margin 323,000 Selling and administrative expense Net operating income $ 323,000 Prepare an income statement for the year. Assume that the company IS 950,000 Lynch Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold $ 399,000 Variable selling and administrative expense 57,000 456,000 494,000 Contribution margin Fixed experises Fixed selling and administrative Fixed manufacturing overhead 186,000 276,000 462,000 32,000 $