Exercise 7.6 (Static) Variable and Absorption Costing Unit Product Costs and Income Statements [LO7-1 [07-2] Lynch Company manufactures and sells a single product. The following costs were Incurred during the company's first year of operations Durng the year, the company produced 25,000 units and sold 20,000 units. The selling price of the company's product is $50 per unt Required: 1. Assume that the company uses absorption costing a. Compute the unt product cost D. 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. Prepare an income atatement for the year. Assume that the company uses absorption costing