Exercise $6-14($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 $ $56\mathrm{.}70$ per unit

Direct materials $ $9\mathrm{.}70$ per unit

Direct labor $ $7\mathrm{.}20$ per unit

Variable overhead $ $11\mathrm{.}70$ per unit

Fixed overhead $ $944,700$ per year

Compute gross profit assuming $($a$)67,000$ units are produced and $67,000$ units are sold and $($b$)94,000$ units are produced and $67,000$ units are sold.

By how much would the company$$s gross profit increase or decrease from producing $27,000$ more units than it sells?