Exercise 06-12 Absorption costing and overproduction LO C1 Jacquie Inc. reports the following annual cost data for its single product. Normal production and sales level Sales price Direct materials Direct labor Variable overhead Fixed overhead 65,000 units 56.50 per unit 9.50 per unit $ 7.00 per unit $ 11.50 per unit $ 877,500 in total Cost of goods sold: 65,000 units 90,000 units Cost of goods sold per unit Number of units sold Total cost of goods sold Jacquie Inc. Income statement through gross margin Sales volume 65,000 units 65,000 units If Jacquie increases its production to 90,000 units, while sales remain at the current 65,000-unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to double current production Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: $ 0