in 2020 a company agreed to pay 20% of the gross profit from the sale of a company usingthe LIFO assumption in 2021 the following information is available.

beginning inventory 1/1/2021 (10,000 units @$30) $300,000

Purchases (40,000 units @ $30) $1,200,000

Sales (35,000 units @ $60) $2,100,100

By the end of the year the purchase price has risen to $40 per unit. Three days before year end the company is in a position to purchase 20,000 additional units at $40 per unit. Due to increase in purchase price the company increase the selling price in 2022 to $80 per unit. inventory on hand before the purchase , 15,000 units is sufficient to meed the next 6 months sales and the company does not anticipate any significant changes.

1. Determine the effect of the purchase of the additional 20,000 units on the 2021 gross profit from the sale