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HOW DO I CALCULATE? Jacquie Inc. reports the following annual cost data for its single product Normal production and sales level Sales price 61,000 units
HOW DO I CALCULATE?
Jacquie Inc. reports the following annual cost data for its single product Normal production and sales level Sales price 61,000 units 56.10 per unit 9.10 per unit 6.60 per unit 11.10 per unit $ 750,300 in total Direct materials Direct labor Variable overhead Fixed overhead Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal places.) Production volume Cost of goods sold: 61,000 units 82,000 units Direct materials per unit Direct labor per unit Variable overhead per unit Fixed overhead per unit 9.10 6.60 11.10 12.30 Cost of goods sold per unit 39.10 61,000 Number of units sold Total cost of goods sold 2,385,100 Jacquie Inc. Income statement through gross margin Sales volume 61,000 units 61,000 units Sales 2,385,100 Cost of goods sold Gross margin (2,385,100) 0 If Jacquie increases its production to 82,000 units, while sales remain at the current 61,000-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. Gross margin increases by: Number of units sold Change in fixed overhead cost per unit Change in cost of goods sold: 0Step by Step Solution
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