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 $ $56\mathrm{.}80$ per unit

Direct materials $ $9\mathrm{.}80$ per unit

Direct labor $ $7\mathrm{.}30$ per unit

Variable overhead $ $11\mathrm{.}80$ per unit

Fixed overhead $ $979,200$ per year

$1.$ Compute gross profit assuming $($a$)68,000$ units are produced and $68,000$ units are sold and $($b$)96,000$ units are produced and $68,000$ units are sold.

$2.$ By how much would the company$$s gross profit increase or decrease from producing $28,000$ more units than it sells?