I am so confused and dont know where to start. please help. Dont Understand

Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28,100 units) $1,124,000 Variable expenses: Variable cost of goods sold 5 418,690 Variable selling and administrative 188,270 606,960 Contribution margin 517,040 Fixed expenses: Fixed manufacturing overhead 248,800 Fixed selling and administrative 280,240 529,040 Net operating loss $( 12,000) 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 producta swimsuit. Production and cost data relating to the swimsuit for the rst quarter follow: Units produced 31,100 Units sold 28,100 Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative {hm-mm ONHW'J . . \\lexlU'I 000 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 (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? (2. Reconcile the variable costing and absorption costing net operating incomes for the second quarter