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: $ 12 Direct materials Direct labor Variable manufacturing overhead 1 1 Variable selling and administrative Pixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $360,000 $270,000 During the year, the company produced 36,000 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