Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations Variable costs per nit Manufacturing Direct materials Direct labor Variable maufacturing overhead Variable selling and administrative $6 $9 $3 $4. Fixed costs per year $300, 000 $190, 000 Fixed manuf acturing overhead Fixed selling and administrative During the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 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. Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement 1,000,000 Sales Variable expenses Variable cost of goods sold Variable selling expense Contribution margin 1,000,000 Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative expense $ 1,000,000 Net operating income