Exercise 19-14 (Algo) Absorption costing and overproduction LO C1 Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing. Sales price Direct materials Direct labor Variable overhead Fixed overhead $ 56.20 per unit $ 9.20 per unit $ 6.70 per unit $ 11.20 per unit $ 781,200 per year 1. Compute gross profit assuming (a) 62,000 units are produced and 62,000 units are sold and (b) 84,000 units are produced and 62,000 units are sold. 2. By how much would the company's gross profit increase or decrease from producing 22,000 more units than it sells? Answer is not complete. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute gross profit assuming (a) 62,000 units are produced and 62,000 units are sold and (b) 84,000 units are produced and 62,000 units are sold. Sales $ Cost of goods sold Gross profit (a) 62,000 Units Produced and 62,000 Units Sold 3,484,400 $ (2,256,200) 1,228,200 $ (b) 84,000 Units Produced and 62,000 Units Sold < Required 1 3,448,400 (2,256,200) 1,228,200 Required 2 >