Tami Tyler opened Tamis 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 (21,000 units) Variable expenses $ 762,300 Variable cost of goods sold Variable selling and administrative $260,400 162,750 423,150 Contribution margin Fixed expenses 339,150 Fixed manufacturing overhead Fixed selling and administrative 204,000 217,000 421,000 Net operating loss $ (81,850) Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she had planed 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 e swimsuit for the first quarter follow: Units produced Units sold Variable costs per unit 24,000 21,000 Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7.40 $ 3.00 $ 2.00 $ 7.75 Required 1. Complete the following a. Compute the unit product cost under absorption costing. (Round your intermediate and final answers to 2 decimal places.) t cost 20.90