Exercise $19-14($Algo$)$ Absorption costing and overproduction LO C$1$

Jax Incorporated reports the following data for its only product. The company had no beginning finished goods inventory and it uses absorption costing.

Sales price

Direct materials

Direct labor

variable overhead

Fixed overhead

$ $57\mathrm{.}90$ per unit

$$10\mathrm{.}90$ per unit

$$8\mathrm{.}49$ per unit

$$12\mathrm{.}90$ per unit

$$1,398,300$ per year

Compute gross profit assuming $($a$)79,000$ units are produced and $79,000$ units are sold and $($b$)118,000$ units are produced and $79,000$ units are sold.

By how much would the company's gross profit Increase or decrease from producing $39,000$ more units than it sells?

Complete this question by entering your answers in the tabs below.

Required $1$

Compute gross profit assuming $($a$)79,000$ units are produced and $79,000$ units are sold and $($b$)118,000$ units are produced and $79,000$ units are sold.

$\backslash$table$[[,\backslash$table$[[($a$)79,000$ Units$],[$Produced and $79,000],[$Units Sold$]],\backslash$table$[[($b$)118,000$ Units$],[$Produced and $79,000],[$Units Sold$]]],[,,],[$Gross profit,,$]]$