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 roethe-Quarter Ended March,31 Sales (28,300 units) variable expenses: 1,132,000 Variable cost of goods sold variable selling and adninistrative 424,500 191,025 Contribution margin Fixed expensess 615,525 516,475 Pixed manufacturing overhead Fixed selling and adninistrative 272,310 257 215 529,525 $13,050) Net operating loss 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 swimsult for the first quarter follow: Unita produced Unita sold Variable costs per unitr 31,300 28,300 Direct materials Direct labor Variable nanufacturing overhead Variable selling and administrative 7.30 5.90 0 1.80 6.75 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 31,300 units but sold 34,300 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 Req 1A Req 18 Req 1C Req 3A Req 38 Req 3C During the second quarter of operations, the company again produced 31,300 units but sold 34,300 units. What is the company's variable costing net operating income (loss) for the second quarter? Tami's Creations, Inc. Variable Costing Income Statement Sales Variable expenses Variable cost of goods sold Variable selling and administrative margin xed expenses Fixed g overhead Fixed selling and administrative Net operating income Req 1C Req 38 Req 1A Req 18 Req 1C Req 3A Req 3B Req 3C During the second quarter of operations, the company again produced 31,300 units but sold 34,300 units. What is the company's absorpton costing net operating income (loss) for the second quarter? (Round your intermediate calculations to 2 decimal places.) Tami's Creations, Inc Absorption Costing Income Statement Total Sales Cost of goods sold Gross margin Selling and Net operating income expenses