Consol Co. makes cardboard boxes. During the most recent accounting period, Consol paid $60,000 for raw materials, $48,000 for labor, and $52,000 for overhead costs. Consol completed and sold 400,000 boxes. Selling expenses amounted to $10,000, and general and administrative expenses amounted to $30,000. The company wishes to earn a gross margin equal to 40% of product cost.

a. How much is product cost?

b. How much is period cost?

c. How much is gross margin?

d. What is the selling price per box?

e. How much is the operating income?