Answer is not complete. Complete this question by entering your answers in the tabs below. Prepare an income statement for the year. Assume that the company uses absorption costing. Exercise 4-6 (Algo) Variable and Absorption Costing Unit Product Costs and Income Statements [LO4-1, LO4-2] Lynch Company manufactures and sells a single product. The following costs were incurred during the company's first year of operations: During the year, the company produced 38,000 units and sold 18,000 units. The selling price of the company's product is $61 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. Prepare an income statement for the year. Assume that the company uses variable costing