My answer is incomplete and I am stuck... please help!

Lynch Company manufactures and sells a single product. The following costs were incurred during the companys first year of operations:

Variable costs per unit:
Manufacturing:
Direct materials		$ 11
Direct labor		$ 5
Variable manufacturing overhead		$ 2
Variable selling and administrative		$ 2
Fixed costs per year:
Fixed manufacturing overhead	$ 350,000
Fixed selling and administrative	$ 260,000

During the year, the company produced 35,000 units and sold 25,000 units. The selling price of the companys product is $46 per unit.

Required:

1.	Assume that the company uses absorption costing:

a.	Compute the unit product cost.

Unit product cost

$28

b.

Prepare an income statement for the year.

Lynch Company
Absorption Costing Income Statement
Sales	$1,150,000
Cost of goods sold
Gross margin	1,150,000
Total selling and administrative expense
Net operating income	$1,150,000

2.	Assume that the company uses variable costing:

a.	Compute the unit product cost

Unit product cost

b.	Prepare an income statement for the year.

Lynch Company
Variable Costing Income Statement
Sales		$1,150,000
Variable expenses:
Variable cost of goods sold
Variable selling and administrative expense
		0
Contribution margin		1,150,000
Fixed expenses:
Fixed manufacturing overhead	350,000
Fixed selling and administrative expense	260,000
		610,000
Net operating income		$540,000