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Swisher, Incorporated reports the following annual cost data for its single product. Normal productionlevel30,000 units DirectMaterials$6.40 per unit DirectLabor$3.93per unit VariableOverhead$5.80 per unit FixedOverhead$150,000in total
Swisher, Incorporated reports the following annual cost data for its single product.
Normal productionlevel30,000 units
DirectMaterials$6.40 per unit
DirectLabor$3.93per unit
VariableOverhead$5.80 per unit
FixedOverhead$150,000in total
This product is normally sold for $48 per unit. If Swisher increases its production to 50,000 units, while sales remain at the current 30,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing?
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