Tomi Tyler opened Tomi'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 menagerial accounting at State University. $ 1,126,000 $ Tami's Creations, Inc Income Statement For the Quarter Ended March 31 Sales (28,150 units Variable expenses: Variable cost of goods sold Variable selling and administrative Contribution margin Fixed expenses Fixed manufacturing overhead Fixed selling and administrative Net operating loss 439,140 197,050 636,190 489,810 298, 350 213,950 512 310 (22,500) $ 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 products swimsuit. Production and cost diste relating to the swimsuit for the first quarter follow. 33,150 29,150 Units produced Units sold Variable costs per unit Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative $ 7,40 S 6.30 $ 1.90 $7.00 Required: 1. Complete the following: 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 33,150 units but sold 38,150 units. (Assume no change in total fixed costs.) 2. 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 11 Reg 10 Rey 10 Reg 3A Req 3B Req 30 Compute the unit product cost under absorption costing. (Round your answer to 2 decimal places.) Unit product cost CRq1A Req 1B >