Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 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 $ 24 $ 14 $ 2 $ 4 $800,000 $496,000 5. What is the company's total gross margin (loss) under absorption costing? Total gross margin Diego Company manufactures one product that is sold for $80 per unit. The following information pertains to the company's first year of operations in which it produced 40,000 units and sold 35,000 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 $ 24 $ 14 $ 2 $ 4 $800,000 $496,000 6. What is the company's net operating income (loss) under absorption costing? Answer is complete but not entirely correct. Net operating income $ 48,000