A manufacturer reports direct materials of $$6$ per unit, direct labor of $$3$ per unit, and variable overhead of $$4$ per unit. Fixed overhead is $$148,000$ per year, and the company estimates sales of $14,800$ units at a sales price of $$26$ per unit for the year. The company has no beginning finished goods inventory.

If the company uses absorption costing, compute gross profit assuming $($a$)14,800$ units are produced and $14,800$ units are sold and $($b$)18,500$ units are produced and $14,800$ units are sold.

If the company uses variable costing, how much would contribution margin differ if the company produced $18,500$ units instead of producing $14,800?$ Assume the company sells $14,800$ units. Hint: Calculations are not required.

Complete this question by entering your answers in the tabs below.

If the company uses absorption costing, compute gross profit assuming $($a$)14,800$ units are produced and $14,800$ units are sold and $($b$)18,500$ units are produced and $14,800$ units are sold.

$\backslash$table$[[,\backslash$table$[[($a$)14,800$ Units$],[$Produced and$],[14,800$ Units Sold$]],\backslash$table$[[($b$)18,500$ Units$],[$Produced and$],[14,800$ Units Sold$]]],[,,],[,,],[$Gross profit,,$]]$