Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing.

1. Compute gross profit assuming (a) 68,000 units are produced and 68,000 units are sold and (b) 96,000 units are produced and 68,000 units are sold.

(Not sure what I did wrong)

SalespriceDirectmaterialsDirectlaborVariableoverheadFixedoverhead$56.80perunit$9.80perunit$7.30perunit$11.80perunit$979,200peryear Compute gross profit assuming (a) 68,000 units are produced and 68,000 units are sold and (b)96,000 units are produced and 68,000 units are sold