Xenon Corp makes a number of industrial products. The company estimates annual manufacturing overhead at $1,500,000, materials cost at $600,000 and labor costs at $1,000,000.

In addition, the company considers one-third of its manufacturing overhead to be variable.

Both variable and fixed manufacturing overhead is allocated using direct labor cost.

One of the products is a pump. It requires $12 in materials and $30 in labor. Each pump sells for $90.

1. If pumps do not incur any variable selling or admin costs, what is the contribution margin per pump?
2. What is the gross margin per pump?
3. What is the inventoriable cost per pump using Variable Costing and using Absorption Costing?