Jacquie Inc. reports the following annual cost data for its single product.

Normal production and sales level		74,000	units
Sales price	$	57.40	per unit
Direct materials	$	10.40	per unit
Direct labor	$	7.90	per unit
Variable overhead	$	12.40	per unit
Fixed overhead	$	1,198,800	in total

Complete the below table using absorption costing. (Round cost per unit answers to 2 decimal place.)

	Production volume
Cost of goods sold:	74,000 units	108,000 units
Cost of goods sold per unit
Number of units sold
Total cost of goods sold
Jacquie Inc.
Income statement through gross margin
	Sales volume
	74,000 units	74,000 units
If Jacquie increases its production to 108,000 units, while sales remain at the current 74,000 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.
Number of units sold
Change in fixed overhead cost per unit
Change in cost of goods sold: