Tramor Company reports the following cost data for its single product. The company regularly sells...
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Accounting
Tramor Company reports the following cost data for its single product. The company regularly sells 20,000 units of its product at a price of $80 per unit. If Tramor doubles its production to 40,000 units while sales remain at the current 20,000-unit level, by how much would the companys gross profit increase or decrease under absorption costing?
Direct Materials $10 per unit
Direct labor $12 per unit
Overhead costs for the year
Variable OH $3 per unit
Fixed OH per year $40000
Normal Production level in units 20000
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