Smith Company has the following results for a certain year. All variances are written off as additions to (or deductions from) the standard cost of goods sold.

Sales: 150,000 units, at $20 $3,000,000

Net variance for standard variable manufacturing costs $ 33,000 unfavorable

Variable standard cost of goods manufactured $ 11 per unit

Variable selling and administrative expenses $ 3 per unit

Fixed selling and administrative expenses $ 650,000

Fixed manufacturing overhead $ 165,000

Maximum capacity per year 190,000 units

Expected production volume for year 150,000 units

Beginning inventory of finished goods 15,000 units

Ending inventory of finished goods 10,000 units

1. What is Beginning inventory: Absorption-costing basis?

2. What is Gross margin?

3. What is Operating income: Absorption-costing basis?

4. What is Beginning inventory: Variable-costing basis?

5. What is Contribution margin?

6. What is Operating income: Variable-costing basis?