Tami Tyler opened Tami s Creations, manufacturing company, at the beginning of the year. nC. a Small 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 31 Sales (23,000 units) 834,900 Variable expenses 280,600 Variable cost of goods sold Variable selling and administrative 182,850 463,450 371,450 Contribution margin Fixed expenses: Fixed manufacturing overhead 213,200 429.200 Fixed selling and administrative 216,000 Net operating loss (57,750) 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 26.000 Units 23,000 Variable costs per unit: Direct materials 7.40 Direct labor 2.80 Variable manufacturing overhead 2.00 Variable selling and administrative 7.95 Required 1. Complete the following Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.) Unit product cost 20.40