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How much would the companys gross profit increase

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Production level, absorption costing, and gross margin

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 company's gross profit increase or decrease under absorption costing?

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Reference no: EM13339209

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