[The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 23,800 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Complete this question by entering your answers in the tabs below. Ramort doubles its production from 23,800 to 47,600 units while sales remain at the current 23,800 unit level. (a) Compute gross profit when production is 47,600 units under absorption costing. (b) What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing? increases decreases $ 29 per unit $ 31 per unit $ 22 per unit $ 47,600 per year $ 3 per unit Required A Required B What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing? Gross profit by $ 69,000 per year $ 117 per unit < Required A Required B >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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[The following information applies to the questions displayed below.]
Ramort Company reports the following for its single product. Ramort produced and sold 23,800 units this year.
Direct materials
Direct labor
Variable overhead
Fixed overhead
Variable selling and administrative expenses
Fixed selling and administrative expenses
Sales price
Complete this question by entering your answers in the tabs below.
Ramort doubles its production from 23,800 to 47,600 units while sales remain at the current 23,800 unit level.
(a) Compute gross profit when production is 47,600 units under absorption costing.
(b) What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing?
Gross profit
Required A Required B
What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing?
increases
decreases
$ 29 per unit
$ 31 per unit
$ 22 per unit
$ 47,600 per year
$ 3 per unit
by
$ 69,000 per year
$ 117 per unit
< Required A
Required B >
Transcribed Image Text:[The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 23,800 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Complete this question by entering your answers in the tabs below. Ramort doubles its production from 23,800 to 47,600 units while sales remain at the current 23,800 unit level. (a) Compute gross profit when production is 47,600 units under absorption costing. (b) What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing? Gross profit Required A Required B What is the change in gross profit by increasing production from 23,800 units to 47,600 units under absorption costing? increases decreases $ 29 per unit $ 31 per unit $ 22 per unit $ 47,600 per year $ 3 per unit by $ 69,000 per year $ 117 per unit < Required A Required B >
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