Question: For 2a, the textbook solution answer says the sales is 100,000 how do you get that? EXERCISE 6-6 Variable and Absorption Costing Unit Product Cost

 For 2a, the textbook solution answer says the sales is 100,000 For 2a, the textbook solution answer says the sales is 100,000 how do you get that?
how do you get that? EXERCISE 6-6 Variable and Absorption Costing Unit

EXERCISE 6-6 Variable and Absorption Costing Unit Product Cost u LO6-1, LO6-2 Lynch Company manufactures and sells a single product. The following costs were i the company's first year of operations: incurred durin Variable costs per unit Manufacturing: $6 $9 $3 $4 Direct materials Direct labor Variable selling and administrative.... Fixed costs per year: . $ $300,000 Fixed manufacturing overhead Fixed selling and administrative . .. . . .. . $190,000 During the year, the company produced 25,000 units and sold 20,000 units. The selling price of te 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 Assume that the company uses variable costing: a. 2. Compute the unit product cost. Prepare an income statement for the year. b

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