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Requlred Informatlon

Use the following information for the Quick Study below. $($Algo$)$

$[$The following information applies to the questions displayed below.$]$

Ramort Company reports the following for its single product. Ramort produced and sold $23,600$ units this year.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Sales price

$$28$ per unit

$$30$ per unit

$$21$ per unit

$$47,200$ per year

$$2$ per unit

$$68,80$ per year

$$114$ per unit

QS $19-10($Algo$)$ Absorption costing and overproduction LO C$1$

Ramort doubles its production from $23,600$ to $47,200$ units while sales remain at the current $23,600$ unit level.

$($a$)$ Compute gross profit when production is $47,200$ units under absorption costing.

$($b$)$ What is the change in gross profit by increasing production from $23,600$ units to $47,200$ units under absorption costing?

Answer is not complete.

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Required A$.$

Required B

Compute gross profit when production is $47,200$ units under absorption costing.