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 hasjust completed a course in managerial accounting at State University. En&d 31 sas,S2e 282 , see unit,) Variable eRpen variable cost of Bnd Cmtribution Fixed Nrof.cturing selling sold 175 S ( 13,50 Ms. Tyler is discouraged over the loss shown far the quarter. particularly because she had planned to use the statement as support for a bank loan. Arother 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 producta swimsuit. Production and cost data relating to the swimsuit for the first quarter follow. Variable costs Direct V" i able wuf.cturing Required: Complete the following: 31,4e s 6.ee 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 (10ss) figures. 3. During the second quarter of operations. the company again produced 31.400 units but sold 34,400 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.