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: Variable costs per unit Manufacturing Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $12 $5 $ 1 $1 Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative $ 360,000 $270,000 During the year, the company produced 36,000 units and sold 18,000 units. The selling price of the company's product is $55 per unit. 1. Assume that the company uses absorption costing: a. Compute the unit product cost. Unit product cost 2. Assume that the company uses variable costing: a. Compute the unit product cost. Unit product cost This is a numeric cell, so please enter numbers only. b. Prepare an income statement for the year. Lynch Company Variable Costing Income Statement Sales Variable expenses: Fixed expenses: Net operating income