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 Tami's Creations Inc Income Statement For the Quarter Ended March 31 Sales (23,000 units) 834,900 Variable expenses: Variable cost of goods sold 280,600 Variable selling and administrative 182,850 463,450 371,450 Contribution margin Fixed expenses: Fixed manufacturing overhead 213,200 Fixed selling and administrative 216,000 429,200 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