Diego Company manufactures one product that is sold for $78 per unit. The following information pertains to the companys first year of operations in which it produced 49,000 units and sold 44,000 units.

Variable costs per unit:
Manufacturing:
Direct materials	$	28
Direct labour	$	14
Variable manufacturing overhead	$	4
Variable selling and administrative	$	6
Fixed costs per year:
Fixed manufacturing overhead	$	686,000
Fixed selling and administrative expenses	$	510,000

1. What is the unit product cost under variable costing?

2. What is the unit product cost under absorption costing?

3. What is the companys total gross margin under absorption costing?

4. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?

5. What would have been the companys variable costing net operating income (loss) if it had produced and sold 44,000 units?

6. What would have been the companys absorption costing net operating income (loss) if it had produced and sold 44,000 units?