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 NEN $800,000 5496,000 5. What is the company's total gross margin (loss) under absorption costing Total gross margo 3. What is the company's total contribution margin under variable costing? Total Contribution margin 6. What is the company's net operating income (loss) under absorption costing? 4. What is the company's net operating income under variable costing? (Net operating loss 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)? Difference of Variable Costing and Absorption Costing Net Operating Incomes Variable costing net operating income (loss) Add Fixed manufacturing overhead cost deferred in inventory under absorption costing Absorption costing net operating income (loss) 100,000 64,000 $ 10. What would have been the company's absorption costing net operating income (loss) if it had produced and sold 35,000 units? DIEGO COMPANY Income Statement $ 2,800,000 Sales Cost of Goods Sold $ 840,000 490,000 70,000 Fixed selling and administrative Gross margin Selling and Administrative Expenses 1,400,000 1.400.000 $ 140,000 80,000 496.000 5 $ 716,000 684,000