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) 77,000 units are produced and 77,000 units are sold and (b) 114,000 units are produced and 77,000 units are sold. 2. By how much would the companys gross profit increase or decrease from producing 37,000 more units than it sells?

SalespriceDirectmaterialsDirectlaborVariableoverheadFixedoverhead$57.70perunit$10.70perunit$8.20perunit$12.70perunit$1,316,700peryear 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? Gross profit by Required 1 Required 2