Bonita Visuals produces Tablets and Books. Total overhead costs traditionally have been allocated on the basis of direct labor hours. After implementing activity-based costing, managers determined the following cost pools and cost drivers. They also decided that general costs should no longer be allocated to products. Department Activity Pool Costs Cost Driver Binding $297,000 Number of units Printing 955,500 Machine hours Product design 234,000 Change orders General 727,500 None Total overhead costs $2,214,000 Other information is as follows: Units Direct materials cost per unit Direct labor cost per unit Direct labor hours Machine hours Change orders Tablets 62,500 $4.00 $4.00 30,000 150,000 1,500 Books 20,000 $10 $8.00 19,200 144,000 2,400 Bonita's managers have gathered the following information about selling and administrative costs. Activity Pool Total Cost Cost Driver Shipping $480,000 Pounds shipped Advertising 187,500 Number of mailings Commissions 168,125 Sales price Total selling and administrative costs $835,625 Weight Advertising mailings Sales commission Selling price per unit Tablets 20,000 pounds 25,000 5% of sales price $35 Books 40,000 pounds 100,000 8.00% of sales price $98 (a) Using the information given here, calculate the product margin per unit for Tablets and Books using the traditional costing system. (Round all rates and final answers to 2 decimal places, es. 15.25.) Tablets Books Product margin per unit $ (b) Prepare a report like the one in Exhibit 7-12, Panel A. (Round % of total margin to 1 decimal place, eg. 15.2%) Tablets Books Sales price Product costs Product margin Unit sales $ Total margin % of total margin % %