Barnes Company reports the following for its product for its first year of operations.

Direct materials	$ 35	per unit
Direct labor	$ 25	per unit
Variable overhead	$ 10	per unit
Fixed overhead	$ 48,000	per year
Variable selling and administrative expenses	$ 3	per unit
Fixed selling and administrative expenses	$ 20,000	per year

The company sells its product for $150 per unit. Compute gross profit using absorption costing assuming the company (a) produces and sells 2,000 units and (b) produces 2,400 units and sells 2,000 units.

Answer is complete but not entirely correct. (a) 2,000 Units (b) 2,400 Units Gross profit using absorption costing Produced and 2,000 Produced and 2,000 Units Sold Units Sold Sales 300,000 $ 300,000 Cost of goods sold 188,000 216,000 Gross profit 112,000 84,000