A manufacturer reports direct materials of $7 per unit direct labor of S4 per unit, and variable overhead of $5 per unit Fixed overhead is $140.000 per year, and the company estimates sales of 14,000 units at a sales price of $30 per unit for the year. The company has no beginning finished goods inventory 1. If the company uses absorption costing, compute gross profit assuming (a) 14,000 units are produced and 14,000 units are sold and (6) 17.500 units are produced and 14,000 units are sold 2. If the company uses variable costing, how much would gross profit differ if the company produced 17.500 units instead of producing 14,000? Assume the company sells 14,000 units. Hint Calculations are not required. Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company uses absorption costing, compute gross profit assuming (a) 14,000 units are produced and 14,000 units are sold and (b) 17.500 units are produced and 14,000 units are sold. Sales Cost of goods sold Gross profit (a) 14,000 Units (b) 17,500 Units Produced and Produced and 14,000 Units Sold 14,000 Units Sold $ 420.000 5 420.000 364.000 $ 56,000 F Required 2 >