Question: Use the following information for the Quick Study below. ( Algo ) [ The following information applies to the questions displayed below. ] Ramort Company

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 21,000 units this year.
\table[[Direct materials,$15 per unit],[Direct labor,$17 per unit],[Variable overhead,$8 per unit],[Fixed overhead,$42,000 per year],[Variable selling and administrative expenses,$4 per unit],[Fixed selling and administrative expenses,$66,200 per year],[Sales price,$75 per unit]]
QS 19-10(Algo) Absorption costing and overproduction LO C1
Ramort doubles its production from 21,000 to 42,000 units while sales remain at the current 21,000 unit level.
(a) Compute gross profit when production is 42,000 units under absorption costing.
(b) What is the change in grss profit by increasing production from 21,000 units to 42,000 units under absorption costing?
 Use the following information for the Quick Study below. (Algo) [The

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