For the Quarter Ended March 31 Sales (25,000 units) Variable expenses 5 907,500 Variable cost of goods sold Variable selling and administrative 5 305,000 195,000 500,000 407,500 Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 228,800 217,000 443,800 Net operating loss S (36,300) 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 rsther than variable costing and argues that if absorption costing had been used the company would probably 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: Units produced Units sold Variable costs per unit 28,000 25,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 5 7.50 5 2.80 5 1.90 5 7.80 Required 1. Complete the following: s. Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.) duct cost b. Redo the company's income statement for the quarter using sbsorption costing. Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc. Absorption Costing Income Statement Total Net operating income (loss) c. Reconcile the variable and absorption costing net operating income (loss) figures. Round your intermediate calculations to 2 decimal places.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Ab sorption costing net operating income