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Academy Press produces textbooks for high school accounting courses. The company recently hired a new editor, Billie Green, to handle production and sales of books for an introductory accounting course. Billie's compensation depends on the gross margin associated with sales of this book. Billie needs to decide how many copies of the book to produce. The following information is available for the fall semester 2020:

More info

Estimated sales	28,000 books
Beginning inventory	0 books
Average selling price	$82 per book
Variable production costs	$53 per book
Fixed production costs	$644,000 per semester

The fixed-cost allocation rate is based on expected sales and is therefore equal to $644,000 28,000 books = $23 per book.

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Billie has decided to produce either 28,000, 35,000, or 40,600 books.

Requirements

1.	Calculate expected gross margin if Billie produces 28,000, 35,000, or 40,600 books. (Make sure you include the production-volume variance as part of cost of goods sold.)
2.	Calculate ending inventory in units and in dollars for each production level.
3.	Managers who are paid a bonus that is a function of gross margin may be inspired to produce a product in excess of demand to maximize their own bonus. There are metrics to discourage managers from producing products in excess of demand. Do you think the following metrics will accomplish this objective? Show your work.
	a.	Incorporate a charge of 15% of the cost of the ending inventory as an expense for evaluating the manager.
b.	Include nonfinancial measures when evaluating management and rewarding performance.

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i need all requirements completed I will show part of requirement 1 to show how requirement is formatted to help show how to asnwer the other requirements

Requirement 1. Calculate expected gross margin if Billie produces 28,000, 35,000, or 40,600 books. (Make sure you include the production-volume variance as part of cost of goods sold.)

Calculate the gross margin for each level of production. Begin with 28,000 books, then 35,000 books, and lastly 40,600 books. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.)

	28,000 books
Revenues
Cost of goods sold
Production-volume variance
Net cost of goods sold
Gross margin