Ackerman, Inc. has the following cost data for Product $x,$ and unit product cost using absorption costing when production is $1,000$ units, $2,200$ units, and $4,400$ units.

$($Click on the icon to view the cost data.$)($Click on the icon to view the unit product cost data.$)$

Product $x$ sells for $$176$ per unit. Assume no beginning inventories.

Read the requirements.

Begin by selecting the labels and computing the gross profit for scenario $a.$ and then compute the gross profit for scenario $b.$ and $c.$

Absorption costing

Data table

Direct materials

Direct labor

Variable manufacturing overhead

Fixed manufacturing overhead

Reference