Please answer question 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, and 11. Thank you.

Chapter 8 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. Page 314 Variable costs per unit: Manufacturing: $24 Direct materials $14 Direct labour $2 Variable manufacturing overhead $4 Variable selling and administrative Fixed costs per year: $800,000 Fixed manufacturing overhead Fixed selling and administrative $496,000 expenses Required: Answer each question independently based on the original data unless instructed otherwise. 8-1 1. What is the unit product cost under variable costing? 8-2 What is the unit product cost under absorption costing? 8-3 2. 3. What is the company's total contribution margin under variable costing? 8-4 4 What is the company's net operating income under variable costing? 8-5 5- What is the company's total gross margin under absorption costing? 8-6 6 What is the company's net operating income under absorption costing? 8-7 7. What is the amount of the difference between the variable costing and absorption costing net operating incomes? What is the cause of this difference? 8-8 8 What is the company's break-even point in unit sales? Is it above or below the actual sales volume? Compare the break-even sales volume to your answer for question 6 and comment. 8-9 9. What would have been the company's variable costing net operating income if it had produced and sold 35,000 units? You do not need to perform any calculations to answer this question. 8-10 What would have been the company's absorption costing net operating income if it had produced and sold 35,000 units? You do not need to perform any calculations to answer this question. 8-11 10. 11 If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2? Why? No calculations are necessary