ax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing.

Sales price	$ 56.90	per unit
Direct materials	$ 9.90	per unit
Direct labor	$ 7.40	per unit
Variable overhead	$ 11.90	per unit
Fixed overhead	$ 1,014,300	per year

1. Compute gross profit assuming (a) 69,000 units are produced and 69,000 units are sold and (b) 98,000 units are produced and 69,000 units are sold. 2. By how much would the companys gross profit increase or decrease from producing 29,000 more units than it sells?

	(a) 69,000 Units Produced and 69,000 Units Sold	(b) 98,000 Units Produced and 69,000 Units Sold
options:( cost of goods sold, direct labor, direct materials, fixed overhead, sales, variable overhead)
options:( cost of goods sold, direct labor, direct materials, fixed overhead, sales, variable overhead)
Gross profit

By how much would the companys gross profit increase or decrease from producing 29,000 more units than it sells?

Gross profit : _____increase or descrease__

by: ___________