Diego Company manufactures one product that is sold for $72 per unit.

The following information pertains to the company's first year of operations in which it produced 43,000 units and sold 38,000 units.

Variable costs per unit:

Manufacturing:

Direct materials $ 22

Direct labour $ 14

Variable manufacturing overhead $ 3

Variable selling and administrative $ 5

Fixed costs per year:

Fixed manufacturing overhead $ 774,000

Fixed selling and administrative expenses $346,000

a)What is the unit product cost under variable costing?

b)What is the unit product cost under absorption costing?

c)What is the total contribution margin under variable costing?

d)What is the company's net operating income (loss) under variable costing?

e)What is the company's total gross margin under absorption costing?

f)What is the company's net operating income (loss) under absorption costing?