Help Save & Exit Submit Check my work Tami Tyler opened Tami's 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. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managerial accounting at State University Tami's Creations, Inc. For the Quarter Ended March 31 Sales (25.100 units) Variable expenses Variable cost of goods old $ . Variable selling and dinistrative 125.220 Contribution margin 549.110 Fixed manufacturing overhead Fixed selling and strative Het operating loss 245,800 $ 12.000) Ms Tyler is discouraged over the loss shown for the quarter particularly because she had prned to use the statement as support for a bank loan Another friend a CPA nis that the company should be using absorption costing rather than varble casting and oues that 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 Units produced units sold Direct materials Direct labor variable manufacturing overhead Variable selling and doinistrative Required: 1. Complete the following Comoute the unit product cost under absorption costing b. What is the company's absorption costing net operating income foss) for the quarters c. Reconcile the variable and absorption costing net operating income foss) squres. 3. During the second quarter of operations the company again produced 3100 und but sold 14100 units. Assume no change in total feed costs)