Blue Devil Inc. has only one product, provided the following data concerning its most recent month of operations: Selling price. $80 Units in beginning inventory 0 Units produced. 3,500 Units sold. 3,000 Variable costs per unit: Direct materials $25 Direct labor. $10 Variable manufacturing overhead. $3 Variable Selling & Administrate. $2 Fixed Costs: Fixed manufacturing overhead $70,000 Fixed Selling & Administrate. $60,000

What is the total contribution margin for the month under variable costing? Show your calculation steps. What is the total gross margin for the month under the absorption costing approach? Show your calculation steps.