Tami Tyler opened Tamis Creations, Incorporated, 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. Tylers personal finances. The following income statement for the first quarter was prepared by a friend who just completed a course in managerial accounting at State University.

Tamis Creations, Incorporated Income Statement For the Quarter Ended March 31
Sales (28,300 units)		$ 1,132,000
Variable expenses:
Variable cost of goods sold	$ 438,650
Variable selling and administrative	186,780	625,430
Contribution margin		506,570
Fixed expenses:
Fixed manufacturing overhead	$ 281,700
Fixed selling and administrative	238,370	520,070
Net operating loss		$ ( 13,500)

Ms. Tyler is discouraged over the loss shown for the quarter, particularly because she hoped to use the statement as support for a bank loan. Another friend, a CPA, insists the company should be using absorption costing rather than variable costing and claims if absorption costing had been used, the company probably would have reported a profit for the quarter.

At this point, Ms. Tyler makes only one producta swimsuit. Production and cost data for the first quarter follow:

Units produced	31,300
Units sold	28,300
Variable costs per unit:
Direct materials	$ 7.20
Direct labor	$ 6.40
Variable manufacturing overhead	$ 1.90
Variable selling and administrative	$ 6.60

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.)

1. What is the companys variable costing net operating income (loss) for the second quarter?
2. What is the companys absorption costing net operating income (loss) for the second quarter?
3. Reconcile the variable costing and absorption costing net operating incomes (losses) for the second quarter.

Can someone help me with this part. Thank You