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Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: Variable costa per uniti Manufacturing Direet materials Direct labor Variable manufacturing overbead Variable selling and administrative Fixed costs per yeart Pixed manufacturing overhead Fixed selling and administrative $ 12 7 2 2 $240,000 $158,000 During the year, the company produced 31,000 units and sold 21000 units. The selling price of the company's product is $44 per unit. Required: 1. Assume that the company uses absorption costing: 8. 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. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2A Reg 28 Prepare an income statement for the year. Assume that the company uses variable costing Lynch Company Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative expense 42,000 42,000 (42,000) Contribution margin Forced expenses Fixed manufacturing overhead Fixed selling and administrative 248,000 158,000 Net operating income 406,000 $ (448,000)

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