Question
Jacquie inc reports the following annual cost data for its single product Normal production and sales levels 75,000 unitsSales price $57.50 per unitDirect materials $10.50
Jacquie inc reports the following annual cost data for its single product Normal production and sales levels 75,000 unitsSales price $57.50 per unitDirect materials $10.50 per unitDirect labor $8.00 per unitVariable overhead $12.50 per unitFixed overhead $1,237,500 in totalIn the blue chart there is one more section If jacquie increases its production to 110,000 units, while sales remain at the current 75,000 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
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