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For its first year of operations, a company estimates sales of 8,200 units at a price of $64 per unit. Cost information follows. Direct materials
For its first year of operations, a company estimates sales of 8,200 units at a price of $64 per unit. Cost information follows. Direct materials $ 10 per unit Direct labor $ 8 per unit Variable overhead $ 16 per unit Fixed overhead $ 123,000 per year The company uses absorption costing. (a) Compute gross profit for the year assuming 8,200 units are produced and sold. (b) Compute gross profit for the year assuming 12,300 units are produced and 8,200 units are sold
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