Ramort Company reports the following cost data for its single product. The company regularly sells 20.000 units of its product at a price of $60 per unit. Compute gross margin under absorption costing.
Direct materials................................... $ 10 per unit
Direct labor....................................... $ 12 per unit
Overhead costs for the year
Variable overhead................................. $ 3 per unit
Fixed overhead per year........................... $ 40,000
Selling and administrative costs for the year
Variable............................................. $ 2 per unit
Fixed................................................ $ 65,200
Normal production level (in units)............ 20,000 units