PROBLEM 7-23 Absorption and Variable Costing; Production Constant, Sales Fluctuate LO7-1, 107-2, LO7-3 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. M5. Tyler is discoumaged orer the loss showa for the quarter, particularly because she had plathey At thas paint, Ms. Tyler is manufacturing only one product-a swimsait. Production and relating to the wwimsuit for the first quarter followas Required. 1 Compicte the following: 3. Coinpte the utit product cast ander absorpeicen costing. b. What is the corryaty's abyorption conting net operating iscome (loss) for the quarier? c. Reconcile the variablo aod absorpeion conting net operating income (loss) figures. 2. Was tho CPA cortoct in wisgeating that the conipany really carned a "profit" for the qaarter' Etplat 3. Durieg the kesond quarer of operations, the comapany agaie produced 30,000 anits but sold 33,000 units. (Ameume ni change in total fixed coste.) 3. What is the compary's variable cosing net operating incorne (loss) for the second cuarter? 6. What is the company') abworption coetiog net operating incoune (loss) for the second quarte?t 4. Reconcile the variable conting and abwesption costing oet operating incomes for the stcond quare PhoeLEM 7-2.4 Companywide and Sogment Break-Even Analyalis Decivion Maling L07-4, 107-5 Toxamay Compuny it a mierchasdiner that segments its business into rwo drvisions -Commercial and Renidential. The cempany's acoruating intern mas asked to prepare aegmented income satement the the conpany" divisionat managers could une to calculate their bresak-even points and make dectivios, 5le took the prot moath's conpanywide income statement and prepared the absorption format segmernof income staterestit sown below of commoe fixed expenses the would continue to he the conquny of hotal fived expen andingelabe 5T2.00 dropped, and 538,000 of fixed expenses that seaves that would dfupgen if the Coentoericial segnteat in Requined he thesicential segment in doppet sasement? Why? a. How mush of of the intern's segmenied incoine statement: Retidential segmente? won fixed expenses did she allocine of tul the Cominatral av