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	$	30
Direct labour	$	18
Variable manufacturing overhead	$	2
Variable selling and administrative	$	3
Fixed costs per year:
Fixed manufacturing overhead	$	816,000
Fixed selling and administrative expenses	$	480,000

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

3. What is the companys total contribution margin under variable costing?

4. What is the companys net operating income (loss) under variable costing?

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