Required information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,200 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 11 per unit $ 13 per unit $ 4 per unit $ 40,400 per year $ 3 per unit $ 65,400 per year $ 63 per unit Ramort doubles its production from 20,200 to 40,400 units while sales remain at the current 20,200 unit level. (a) Compute gross profit when production is 40,400 units under absorption costing. (b) What is the change in gross profit by increasing production from 20,200 units to 40,400 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 40,400 units under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Complete this question by entering your answers in the tabs below. Required A Required B What is the change in gross profit by increasing production from 20,200 units to 40,400 units under absorption costing? Gross profit decreases by Ramort Company reports the following for its single product. Ramort produced and sold 20,200 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price $ 11 per unit $ 13 per unit $ 4 per unit $ 40,400 per year $ 3 per unit $ 65,400 per year $ 63 per unit Compute contribution margin for the company under variable costing. RAMORT COMPANY Contribution Margin (Variable Costing) Sales $ 1,272,600 Variable expenses $ 60,600 Variable selling and administrative expenses Variable cost of goods sold Fixed overhead costs 60,600 Contribution margin