Tami Tyler opened Tom'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 Taschets, Te Income Statement for the intended March Sales (28,200 units) 511,128,000 Variable expenses Variable cost of roods sold $420.640 variable selling and distrative 188.340 617.50 Contribution margin 510,420 Fixed expenses Fixed manufacturing overhead 249.640 Fixed selling and administrative 272.820 Het operating loss 112,000) 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 varlable 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 cont data relating to the swimsuit for the first quarter follow 31,200 20,200 Units produced Units sold Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 2.50 $6.20 $ 1.50 $ 6.0 Required: 1. Complete the following: a Compute the unit product cost under absorption costing What is the company's absorption costing net operating income foss) for the quarter? e Reconcile the variable and absorption costing net operating income foss) figures 3. During the second quarter of operations, the company again produced 31,200 units but sold 34,200 units. (Assume no change in total fixed costs) a What is the company's variable couting net operating income foss) for the second quarter? b. What is the company's absorption costing net operating income 0058) for the second quarter? c Reconcile the variable costing and absorption costing net operating incomes for the second quarter