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 $22,400$ units this year.

Direct materials

Direct labor

Variable overhead

Fixed overhead

Variable selling and administrative expenses

Fixed selling and administrative expenses

Sales price

$$22$ per unit

$$24$ per unit

$$15$ per unit

$$44,800$ per year

$$2$ per unit

$$67,600$ per year

$$96$ per unit

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

Ramort doubles its production from $22,400$ to $44,800$ units while sales remain at the current $22,400$ unit level.

$($a$)$ Compute gross profit when production is $44,800$ units under absorption costing.

$($b$)$ What is the change in gross profit by increasing production from $22,400$ units to $44,800$ units under absorption costing?

Complete this question by entering your answers in the tabs below.

Compute gross profit when production is $44,800$ units under absorption costing.

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