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: Direct materials Direct labor Variable manufacturing Variable selling and S 5 S 2 S 2 Fixed costs per year: Fixed manufacturing overhead 350,000 Fixed selling and administrative 260,000 During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the company's product is $46 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