Tami Tyler opened Tamis Creations, Inc., a small manufacturing company, at the beginning of the year Geting the company through its first quarter of operations placed a considerable strain on Ms. Tylers 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. Tamis Creations, Inc Income Statement the Quarter Ended March 31 s 834,900 Sales (23,000 units) Variable expenses: Variable cost of goods sold Variable selling and administrative $ 271,400 271,400 450,800 179,400 450,800 384,100 215,000 436,000 $ (51,900) Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative 221,000 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 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 Units sold Variable costs per unit: 26,000 23,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 740 $ 2.80 1.60 $ 7.80 Required: 1. Complete the following a Compute the unilt product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.)