19.12

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