Stoped 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. Income statement For the Quarter Ended March 11 Sales (20,200 units $1,128,000 Variable expenses Variable cost of goods sold $ 459,660 Variable selling and administrative 180,480 640,140 Contribution margin 487,860 Txed expenses Pixed manufacturing overhead 249,600 Fixed selling and administrative 250,260 Not operating lous 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 product-a swimsuit. Production and cost data relating to the swimsuit for the first quarter follow 3 Check my work 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 Skipoed 33,200 28,200 Units produced Units sold Variable costs per unit Direct materiale Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.50 $7.10 $ 1.70 $6.40 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 oss for the quarter? c Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31.200 units but sold 34.200 units. (Assume no change in total fixed costs) a. What is the company's variable costing net operating income foss) for the second quarter? b. What is the company's absorption costing net operating income foss) for the second quarter? c. Reconcile the variable costing and absorption costing net operating incomes for the second quarter