Lynch Company manufactures and sells a single product The following costs were incurred during the company's first year of operations: During the year, the company produced 37,000 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