Vero, Inc. began operations at the start of the current year, having a production target of 75,000 units. Actual production totaled 75,000 units, and the company sold 95% of its manufacturing output at $65 per unit. The following costs were incurred:

Manufacturing:
Direct materials used	$	270,000
Direct labor		540,000
Variable manufacturing overhead		390,000
Fixed manufacturing overhead		825,000
Selling and administrative:
Variable		195,000
Fixed		645,000

Required:

Assuming the use of variable costing, compute the cost of Veros ending finished-goods inventory.

Compute the company's contribution margin. Would Vero disclose the contribution margin on a variable-costing income statement or an absorption-costing income statement?

Assuming the use of absorption costing, how much fixed selling and administrative cost would Vero include in the ending finished-goods inventory?

Compute the company's gross margin.