Answer:
Gross margin= $71,760
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary production cost:
Unitary production costs= (107,640 / 2,990) + 50 + 15 + 12
Unitary production costs= $113
Now, the gross margin:
Gross margin= sales - cost of goods sold
Gross margin= 2,760*139 - 2,760*113
Gross margin= $71,760