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

$\backslash$table$[[$Sales price,$$57\mathrm{.}70$ per unit$],[$Direct materials,$$10\mathrm{.}70$ per unit$],[$Direct labor,$$8\mathrm{.}20$ per unit$],[$Variable overhead,$$12\mathrm{.}70$ per unit$],[$Fixed overhead,$$1,316,700$ per year$]]$

Compute gross profit assuming

$($a$)77,000$ units are produced and $77,000$ units are sold and

$($b$)114,000$ units are produced and $77,000$ units are sold.

By how much would the company's gross profit increase or decrease from producing $37,000$ more units than it sells?

Complete this question by entering your answers in the tabs below.

Required $1$

Required $2$

Compute gross profit assuming $($a$)77,000$ units are produced and $77,000$ units are sold and $($b$)114,000$ units are produced and $77,000$ units are sold.

$\backslash$table$[[,\backslash$table$[[($a$)77,000$ Units$],[$Produced and $77,000],[$Units Sold$]],\backslash$table$[[($b$)114,000$ Units$],[$Produced and $77,000],[$Units Sold$]]],[$Sales$,,],[$Cost of goods sold,,$],[$Gross profit,,$]]$