Managerial Accounting please help

Tami Tyler opened Tami's tions, Inc., a s manufacturing company, at the beginning of the year. the company through its first quarter of rations placed a considerable strain on Ms. personal finances. The income 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. Income Statement For the Quarter Ended March 31 Sales (24,000 units) 871,200 Variable expenses: Variable cost of goods sold 288,000 Variable selling and administrative 192,000 480,000 Contribution margin 391,200 Fixed expenses: Fixed manufacturing overhead 218,700 Fixed selling and administrative 218,000 436,700 Net operating loss (45,500) 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 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 27,000 Units sold 24,000 Variable costs per unit Direct materials 7.50 Direct labor 2.90 1.60 Variable manufacturing overhead 8.00 Variable selling and administrative