Managerial accounting please help with complete answer!!

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 For the Quarter Ended March 31 Sales (23,000 units) 834,900 Variable expenses: Variable cost of goods sold 271,400 177,100 448,500 Variable selling and administrative Contribution margin 386,400 Fixed expenses: Fixed manufacturing overhead 210,600 216,000 426,600 Fixed selling and administrative Net operating loss (40,200) 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 would probably 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 swimsuit for the first quarter follow: Units produced 23,000 Units sold Variable costs per unit 7.20 Direct materials 2.80 Direct labor 1.80 Variable manufacturing overhead Variable selling and administrative