Answer:
Total Gross Margin under absorption costing is $815550
Explanation:
Absorption Costing treats Fixed Manufacturing Costs as a part of product cost.
Sales ($75×52000) 3900000
Less Cost Cost of Sales
Opening Stock of Finished goods 0
Add Production Cost of Finished Goods
Direct Materials ($25× 57000) 1425000
Direct Labor ($18× 57000) 1026000
Variable Manufacturing Overheads ($5× 57000) 285000
Fixed Manufacturing overheads ($11.32×57000) 645000
3381000
Less Closing Stock of Finished goods
(25+18+5+11.31) × (57000-52000) ( 296550)
Cost of Goods Sold 3084450
Gross Profit 815550