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 Fixed selling and administrative S 12 3 $ 1 $ 1 $324,000 $234,000 During the year, the company produced 27,000 units and sold 23,000 units. The selling price of the company's product is $42 per unit. Required: 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year Lynch Company Absorption Costing Income Statement S 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Variable expenses: 0 Fixed expenses