Exercise $19-15($Algo$)$ Absorption costing and overproduction LO C$1$

A manufacturer reports direct materials of $$5$ per unit, direct labor of $$2$ per unit, and variable overhead of $$3$ per unit. Fixed overhead is $$184,000$ per year, and the company estimates sales of $18,400$ units at a sales price of $$22$ per unit for the year. The company has no beginning finished goods inventory.

$1.$ If the company uses absorption costing, compute gross profit assuming $($a$)18,400$ units are produced and $18,400$ units are sold and $($b$)23,000$ units are produced and $18,400$ units are sold.

$2.$ If the company uses variable costing, how much would contribution margin differ if the company produced $23,000$ units instead of producing $18,400?$ Assume the company sells $18,400$ units. Hint: Calculations are not required.