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 $ 403,000 Fixed selling and administrative $ 313,000 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. 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. rev: 07_02_2014_QC_51051 ReferenceseBook & Resources Worksheet