Dataport Company reports the following annual cost data for its single product:
This product is normally sold for $230 per unit. If Dataport increases its production to 100,000 units, while sales remain at the current 89,000 unit level, by how much would the company's gross margin increase or decrease under absorption costing? Assume the company has idle capacity to increase current production.
Definitions:
Confederation Congress
The governing body of the United States under the Articles of Confederation, in operation from 1781 to 1789.
National Commercial Policy
A governmental strategy designed to promote trade, investment, and economic growth within a nation.
Land Ordinance
A foundational legislative act passed in 1785 by the United States Congress for the systematic surveying, planning, and sale of land in the Northwestern Territory.
Northwest Territory
A historical region in the early United States, designated in 1787, that included lands west of Pennsylvania and north of the Ohio River.
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