Taml Tyler opened Tami's Creations, Inc., a small manufacturing company, 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. at the beginning of the year, Getting the company through Income Statement 1,156,000 482,630 200, 855 Contribution margin 472,515 Pixed Pixeds 283,910 201,955 485,865 13,350) loss 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 swimsult for the first quarter follow: 31,900 28,900 Units sold Variable costs per uniti s7.40 s 7.30 2.00 6.95