Return to questi 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 $ 10 $ 4 $1 $ 1 $340,000 $ 250,000 During the year, the company produced 34,000 units and sold 16,000 units. The selling price of the company's product is $54 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. Answer is not complete. Lynch Company Variable Costing Income Statement Sales Variable expenses: Variable cost of goods sold Beginning merchandise inventory Variable cost of goods sold $510,000 270,000 240,000 ses variable $ 864,000 1,020,000 (156,000) Fixed manufacturing overhead 340,000 Fixed manufacturing overhead 590,000 930,000 Net operating income $ (1,086,000)