ABC Corporation's activity-based costing system has three activity cost pools-Machining, Setting up, and other. The company's overhead costs have already been allocated to these cost pools as follows: Cost Pools Activity Measures Total Activity Activity Rate Machining Setting Up Machine Hours (MHS) Number of Batches 8,000 MH 200 batches $1.52 per MH $44.80 per batch Costs in the Machining cost pool are assigned to products based on machine-hours (MHs) and costs in the Setting up cost pool are assigned to products based on the number of batches. Costs in the other cost pool are not assigned to products. The following table shows the company's product overhead cost: Overhead Costs Product E8 Product V8 Machining $3,040 $12,160 Setting Up $35,840 $8,960 Total $38,880 $21,120 Additional data concerning the company's products appears below: Sales Direct materials Direct Labor Product E8 $220,700 $78,600 $89,600 Product V8 $165,500 $83,100 $58,000 Required: What is the product margin of the product E8? Select one: O a. 3 O b. 1