Help Save & E Tami Tyler opened Tami'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 Tami's Creations, Inc. Income Statement r Ended 798,660 Variable cost of goods sold Variable selling and administrative171,600 s 261,800 Contribution margin Fixed expenses: 365,200 Fixed manufacturing overhead Fixed selling and administrative 205,e00 217.000 422.000 s (56,80ee) 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 proft for the quarter At this point, Ms. Tyler is manufacturing only one product-a swimsuit. Production and cost data relating to the swimsulit for the first quarter follow Prey 5 of 13ENext