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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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