Chapter 9 Inventory Costing and Capacity Question 4, P9-36 (similar to) > Part 1 of 10 HW Score: 0%, 0 of 12 points Points: 0 of 3 Save Academia Press produces textbooks for high school accounting courses. The company recently hired a new editor, Morgan Green, to handle production and sales of books for an introductory accounting course. Morgan's compensation depends on the gross margin associated with sales of this book. Morgan needs to decide how many copies of the book to produce. The following information is available for the fall semester 2020: i (Click the icon to view the information.) Morgan has decided to produce either 19,000, 26,600, or 28,500 books. Read the requirements. Requirement 1. Calculate expected gross margin if Morgan produces 19,000, 26,600, or 28,500 books. (Make sure you include the production-volume variance as part of cost of goods sold.) Calculate the gross margin for each level of production. Begin with 19,000 books, then 26,600 books, and lastly 28,500 books. (Enter a "0" for any zero balance accounts. If an account does not have a variance, do not select a label.) Revenues Cost of goods sold Production-volume variance Net cost of goods sold Gross margin 19,000 books More info Estimated sales Beginning inventory Average selling price Variable production costs 19,000 books 0 books $77 per book Fixed production costs $48 per book $437,000 per semester - The fixed-cost allocation rate is based on expected sales and is therefore equal to $437,000 19,000 books = $23 per book. Print Done