(SOLVED) Jacquie Inc reports the following annual cost data for its


Question Description:

$19

Jacquie Inc. reports the following annual cost data for its single product.
Normal production and sales level……………………..60,000 units
Sales price……………………………………………$56,00 per unit
Direct materials……………………………………….$9,00 per unit
Direct labor……………………………………………$6,50 per unit
Variable overhead……………………………………$11,00 per unit
Fixed overhead……………………………………$720,000 in total
If Jacquie increases its production to 80,000 units, while sales remain at the current 60,000-unit level, by how much would the company’s gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production.

Answer

$19