3 Exercise 6-6 Variable and Absorption Costing Unit Product Costs and Income Statements [LO6-1, LO6-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations 0 oints Variable costs per unit: Manufacturing Direct naterials $6 Direct labor $9 $4 s 300,000 eBook Variable sanufacturing overhead Variable selling and adeinistrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative s 190,0ee During the year, the company produced 25.000 units and sold 20,000 units. The selling price of the company's product is $50 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