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 Tani's Creations, Inc. Income Statement For the Quarter Ended Warch 31 Sales (28,100 units) 3 1,124.000 Variable expenses: Variable cost of goods sold $427, 120 Variable selling and adainistrative 191.080 618, 200 Contribution margin 505, 800 Fixed expenses: Fixed Manufacturing werhead 279,900 Fixed selling and adhinistrative 239, 400 519.300 Net operating loss $ 13,500) 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 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 31, 100 28,100 Units produced Units sold Variable costs per unit: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative 7.40 $ 0.20 $ 1.00 $ 0.80 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 (loss) for the quarter? c. Reconcile the variable and absorption costing net operating income (loss) figures. 3. During the second quarter of operations, the company again produced 31,100 units but sold 34,100 units. (Assume no change in total fixed costs.) a. What is the company's variable costing net operating income (loss) for the second quarter? b. What is the company's absorption costing net operating income (loss) for the second quarter? C. Reconcile the variable costing and absorption costing net operating incomes for the second quarter