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S company reports the following annual cost data for its

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S company reports the following annual cost data for its single product:normal production level 75,000 units direct materials $1.25 per unit direct labor $2.50 per unit variable overhead $3.75 per unit fixed overhead $300,000 in total this product is normally sold for $25 per unit. if S company increases its production to 200,000 units,while sales remain at the current 75,000 unit level, by how much would the company's gross margin increase or decrease under variable costing?

Reference no: EM13574528

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