Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the companys first year of operations in which it produced 51,000 units and sold 46,000 units.

Variable costs per unit: Manufacturing: Direct materials Direct labour Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expenses $816,000 $480,000 5. What is the company's total gross margin under absorption costing? Total gross margin