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 Tixed manufacturing overhead Pixed selling and administrative 14 8 2 2 $ $ $250,000 $160,000 During the year, the company produced 25,000 units and sold 21,000 units. The selling price of the company's product is 547 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