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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. $ $ 10 per unit 12 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead per year Selling and adminstrative costs for the year Variable Fixed Normal production level (in units) 3 per unit $ 40,000 $ 2 per unit $ 65,200 20,000 units If Ramort doubles its production to 40,000 units while sales remain at the current 20,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing? Answer is complete but not entirely correct. Production volume Cost of goods sold: 20,000 units 40,000 units Direct materials per unit 10,000.00 $ 10,000.00 Direct labor per unit 12,000.00 12,000.00 Variable overhead per unit 3,000.00 3,000.00 Fixed overhead per unit 2,000.00 1,000.00 26,000.00 Cost of goods sold per unit $ 27,000.00 $ Number of units sold 20,000 520,000 Total cost of goods sold $ 540,000,000 $27.040,000,000 RAMORT COMPANY Income statement through gross margin Sales volume 20,000 units 20,000 units $ 12,000 $ 12,000 (540,000,000) (27.040,000,000) 6,460,000 520,000 Sales Cost of goods sold Gross margin When a company produces more units than it Sells, income under absorption costing: increases because foxed Overhead is deferred 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. $ $ 10 per unit 12 per unit Direct materials Direct labor Overhead costs for the year Variable overhead Fixed overhead per year Selling and adminstrative costs for the year Variable Fixed Normal production level (in units) 3 per unit $ 40,000 $ 2 per unit $ 65,200 20,000 units Compute gross margin under absorption costing. Answer is complete but not entirely correct. Production volume Cost of goods sold: 20,000 units Direct materials per unit $ 10,000.00 Direct labor per unit 12,000.00 Variable overhead per unit 3,000.00 Fixed overhead per unit 2,000.00 Cost of goods sold per unit Number of units sold Total cost of goods sold $ 27,000.00 20,000 $540,000,000 RAMORT COMPANY Income Statement (partial) Sales Cost of goods sold Gross margin Sales volume 20,000 units $ 1.200.000 (540,000,000) 660,000 O