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21) Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's two products - Askin

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21) Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's two products - Askin and Bskin. The two products are skin care products that require a large amount of research and development and advertising. He received the report below. Ken concluded that Askin was the more profitable product, and that perhaps cost-cutting measures should be applied to the Bskin product. Askin Bskin Total Sales $ 4,015,000 $ 2,607,500 $ 6,622,500 Cost of goods sold (2,607,500) (2,115,000) (4,722,500) Gross profit $ 1,407,500 $ 492,500 $ 1,900,000 Research and development (1,185,000) Selling expenses (137,500) Profit before taxes $ 577,500 Feventy-five percent of the research and development and selling expenses were traceable to skin. Profit before taxes for the Bskin product, per life-cycle income statements, is: A) $161,875. B) $411,875. C) $509,375. D) $194,375. F) $319 375

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