Use the following information for the Exercise below. $($Algo$)$

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Barnes Company reports the following for its product for its first year of operations.

Direct materials $ $35$ per unit

Direct labor $ $25$ per unit

Variable overhead $ $11$ per unit

Fixed overhead $ $80,000$ per year

Variable selling and administrative expenses $ $2$ per unit

Fixed selling and administrative expenses $ $37,000$ per year

Exercise $19-5($Algo$)$ Computing gross profit at different production levels LO P$2$

The company sells its product for $$120$ per unit. Compute gross profit using absorption costing assuming the company $($a$)$ produces and sells $4,000$ units and $($b$)$ produces $5,000$ units and sells $4,000$ units.