Tami Tyler opened Tami's 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. Tyler's personal finances. The following income statement for the first quarter was prepared by a friend who has just completed a course in managenal accounting at State University sales (20,000 units) variable expenses T's Creations, Incorporated Income statement For the Quarter Ended March 31 variable cost of goods sold variable selling and administrative Contribution margin Fland expensest Fixed manufacturing overhead Fixed selling and administrative Net operating loss $ 1,152,000 $472,320 104,320 495,368 254,400 252,968 899-959 507,340 1 (12,000) 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 units produced Units sold variable costs per unit: Direct materials Direct labor variable manufacturing overhead Variable selling and administrative Required: 1 Complete the following 31,500 20,000 $7.20 $7.40 $1.00 $6.40 a. 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 (loss) figures 3. During the second quarter of operations, the company again produced 31,800 units but sold 34,800 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 Complete this question by entering your answers in the tabs below. Reg 1A Req 18 Req 1C Req 3A Req 38 Req 30 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost Reg 1A Req 18 >