0285492599 p C dit View Favorites Tools Help Tami Tyler opened Tamis Creations, Inc., a small manufacturing company, at the beginning of the year. Getting the company through its first quarter of operations placed a considerable strain on Ms. Tylers personal nnances. The following income statement first quarter was prepared by a who has just completed a course in managerial accounting at State University. Tami's Creations, Inc. For the Quarter Ended March 31 Sales 122,000 units) 798,600 Variable expenses: $266,200 Variable cost of goods sold 441.100 Variable selling and administrative 174.900 Contribution margin 357,500 Fixed expenses: FDxed manutacturing overhead 202,500 219,000 421,500 Fbed selling and administrative Net operating loss (64.0000 Ms Tyler is discouraged over the loss shown for the quarter, particularty because she had planned to use the statement as support for a bank loan. Another friend, a CPA, insists that the company should be using absorption costing rather than variable costing and argues that if absorption costing had been used the company would probably have reported at least some proft for the quarter At this point, Ms Tyler is manufacturing only one product, a swimsuit Production and cost data relating to the swimsuit for the first quarter follow. Units produced Vanable costs per unit 290