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	$12
Direct labor	$9
Variable manufacturing overhead	$2
Variable selling and administrative	$2
Fixed costs per year:
Fixed manufacturing overhead	$403000
Fixed selling and administrative	$313000

During the year, the company produced 31,000 units and sold 26,000 units. The selling price of the companys product is $55 per unit.

Assume that the company uses variable costing:

a. Compute the unit product cost.

b. Prepare an income state for the year

Unit product cost Lynch Company Variable Costing Income Statement Variable expenses Fixed expenses