Barnes Company reports the following for its product for its first year of operations.

Direct materials	$36	per unit
Direct labor	$26	per unit
Variable overhead	$12	per unit
Fixed overhead	$70,000	per year
Variable selling and administrative expenses	$3	per unit
Fixed selling and administrative expenses	$28,000	per year

The company sells its product for $140 per unit. Compute contribution margin using variable costing assuming the company (a) produces and sells 2,800 units and (b) produces 3,500 units and sells 2,800 units.

The company sells its product for $140 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 2,800 units and (b) produces 3,500 units and sells 2,800 units.