Karla gift baskets sells gift baskets for $125. Each basket cost $60 for its DM, DL and variable MOH. Marcus pays $1330 per month in fixed manufacturing cost, $1000 in fixed selling and administrative cost, and variable selling expenses in the form of sales commissions of 5% of the sales price. In May, 140 baskets were made and sold.

A) under the variable method, calculate contribution margin and operating income for May

B) under the absorption method, calculate gross profit and operating income for May