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The following information is available fro Company X: The company uses an abso...
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The following information is available fro Company X:
- The company uses an absorption costing system
- The company has failed to reach its planned activity level during its first 2 years of operation
- Revenues and costs are constant across the three years in consideration
- Income has been positive in both Year 1 and Year 2
| units produced | units sold | planned activity (units) | |
|---|---|---|---|
| Year 1 | 180,000 | 180,000 | 200,000 |
| Year 2 | 190,000 | 190,000 | 200,000 |
| Year 3 | 180,000 | 180,000 | 200,000 |
Company X's gross margin for Year 3 should be ______________.
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