Refer to the information about Ramort Company in QS 19-5. If Ramort doubles its production to 40.000 units while sales remain at the current 20.000-unit level, by how much would the company's gross margin Increase or decrease under absorption costing?
Direct materials................................... $ 10 per unit
Direct labor....................................... $ 12 per unit
Overhead costs for the year
Variable overhead................................ $3 per unit
Fixed overhead per year........................ $40,000
Selling and administrative costs for the year
Variable............................................. $2 per unit
Fixed................................................ $65,200
Normal production level (in units)............ 20,000 units