Required information. [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit. The following information pertains to the company's first year of operations in which it produced 44,000 units and sold 39,000 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 5. What is the company's total gross margin under absorption costing? Total gross margin $ 23 $ 16 $ 2 4 $748,000 $400,000