Ramort Company reports the following for its single product. Ramort produced and sold $23,400$ units this year.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Sales price

QS $19-10($Algo$)$ Absorption costing and overproduction LO C$1$

Ramort doubles its production from $23,400$ to $46,800$ units while sales remain at the current $23,400$ unit level.

$($a$)$ Compute gross profit when production is $46,800$ units under absorption costing.

$($b$)$ What is the change in gross profit by increasing production from $23,400$ units to $46,800$ units under absorption costing?

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

Required $A$

Required B

Compute gross profit when production is $46,800$ units under absorption costing.