Problem 7-23 Absorption and Variable Costing; Production C LO7-3] Tami Tyler opened Tami's Creations, Inc., a small manufacturing company, at the its first quarter of operations placed a considerable strain on Ms. Tyler's persona quarter was prepared by a friend who has just completed a course in manageria $1, 126,000 Tami's Creations, Inc. Income Statement For the Quarter Ended March 31 Sales (28, 150 units) Variable expenses : Variable cost of goods sold $ 464, 475 Variable selling and administrative 194,235 Contribution margin Fixed expenses Fixed manufacturing overhead 298, 350 Fixed selling and administrative 191, 440 Net operating loss 658, 710 467, 290 489, 790 22,500) $ Ms. Tyler is discouraged over the loss shown for the quarter, particularly because si a bank loan. Another friend, a CPA, insists that the company should be using absors argues that if absorption costing had been used the company probably would have