2 493,000 Contribution margin Fixed expenses: Fixed manufacturing overhead Fixed selling and administrative Net operating loss 288, eee 218,500 586,500 5 points 13,500) Skipped As. Tyler is discouraged over the loss shown for the quarter, particularly because she had planned to use the tatement as support for a bank loan. Another friend, a CPA, insists that the company should be using ibsorption 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 wimsuit for the first quarter follow. eBook References Units produced 32,800 Units sold 29,000 Variable costs per unit: Direct materials $7.40 Direct labor $7.00 Variable manufacturing overhead $ 1.90 Variable selling and administrative $6.78 Required: Complete the following: Compute the unit product cost under absorption costing. . What is the company's absorption costing net operating income (joss) for the quarter? Reconcile the variable and absorption costing net operating income (loss) figures. During the second quarter of operations, the company again produced 32,000 units but sold 35,000 units. Assume no change in total fixed costs.) 1. What is the company's variable costing net operating income foss) for the second quarter? 2. What is the company's absorption costing net operating income (oss) for the second quarter? 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. Req 1A Reg 1B Reg 10 Reg 3 Req 38 Req3C Reconcile the variable and absorption costing net operating income (loss) figures. (Losses and deductions sh entered as a negative.) Reconciliation of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income loss) Absorption costing net operating income (los)