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 Tamil Creation, Inc. Income statement For the Quarter Ended March 31 Sales (20) 600 units) 51.144,000 Variable expenses Variable cost of goods sold 0434,220 Vaclable selling and administrative 188,260 623,400 Contribution margin 520, 520 Fixed expenses Fixed manufacturing overhead 284,400 Fixed selling and administrativo 249,620 534,020 Not operating losa 0 13,5001 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 11,600 28, 600 Units produced Unita nola Variable conta per unit Direct materials Direct labor Variable manufacturing overhead Varbling and dinistrative 5.7.40 05.10 1.90 Required: 1. Complete the following: 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 (oss) figures. 3. During the second quarter of operations, the company again produced 31,600 units but sold 34,600 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