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 $308, eae $218,888 During the year, the company produced 28,000 units and sold 24.000 units. The selling price of the company's product is $41 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 absorption costing. Lynch Company Absorption Costing Income Statement 9A4 On Sales Cost of goods sold 648,000 Contribution margin Selling and administrative expense 24.000 Net operating income S 312 000 36.000 NEY ZR Rey 26 Prepare an income statement for the year. Assume that the company uses variable costing. $ 1,000,000 Lynch Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold s 384,000 Variable selling and administrative expense 24,000 408,000 592.000 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative expense 308,000 218,000 526,000 66.000 Net operating income