[The following information applies to the questions displayed below.]

Diego Company manufactures one product that is sold for $74 per unit in two geographic regionsthe East and West regions. The following information pertains to the companys first year of operations in which it produced 45,000 units and sold 40,000 units.

Variable costs per unit:
Manufacturing:
Direct materials	$	24
Direct labor	$	18
Variable manufacturing overhead	$	3
Variable selling and administrative	$	5
Fixed costs per year:
Fixed manufacturing overhead	$	585,000
Fixed selling andadministrative expenses	$	423,000

1.

What is the unit product cost under variable costing?

2.

What is the unit product cost under variable costing?

3.What is the companys total contribution margin under variable costing?

4.What is the companys net operating income (loss) under variable costing?

5.What is the companys total gross margin under absorption costing?

6.	What is the companys net operating income (loss) under absorption costing? 7.What is the amount of the difference between the variable costing and absorption costing net operating incomes (losses)?