Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: $4 Variable costs per unit: Manufacturing: Direct materials $ 12 Direct labor Variable manufacturing overhead $ 2 Variable selling and administrative $ 2 Fixed costs per year: Fixed manufacturing overhead $ 370, eee Fixed selling and administrative $ 200,00 During the year, the company produced 37,000 units and sold 18.000 units. The selling price of the company's product is $55 per unit. 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