5) Digby Company manufactured and sold 37,000 units of its product at a price of $93 per unit. Total variable cost per unit is $60, consisting of $58 in variable production cost and $2 in variable selling and administrative cost. Fixed overhead is $350,000. a. Compute the contribution margin based on this data. b. Compute the gross profit under absorption costing. a. ($93-$60)(37,000 units) = $1,221,000 b. ($93-$58)(37,000 units) - $350,000 = $945,000