2 $1,144,000 1.76 Joints Tami's Creations. The. Income Statement For the Quarter Ended March 31 Sales (28,600 units) Variable expenses Variable cost of goods sold $ 451,880 Variable selling and administrative 192.140 Contribution margin Fixed expenses Fixed manufacturing overhead 252,800 Fixed selling and administrative 253.980 Net operating loss 649,220 494,780 Book 506,780 $ 12,000) References Ms. Tyler is discouraged over the loss shown for the quarter, particularly 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 probably would have reported at least some profit 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: 31,600 28,600 Units produced hits sold Variable costs per unit Direct materiale Direct labor Variable sanufacturing overhead Variable selling and administrative $ 7.40 $ 6.50 1.90 86.90 Required: 1 Complete the following a. Compute the unit product cost under absorption costing b. What is the company's absorption costing net operating income foss) for the quarter? c Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31,600 units but sold 34,600 units. (Assume no change in total fixed costs) a What is the company's variable costing net operating income foss) for the second quarter? 1. What is the company's absorption casting net operating income foss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second