Caved Hydraulic Hoses, Incorporated produces specialized industrial hoses for applications such as high-pressure hydraulics and the transference of highly corrosive materials. The company has recently implemented an ABC system for three of its products, and is interested in evaluating its effectiveness before converting to an ABC system for all products. To perform this evaluation the company compiled data for the three products using both the traditional system and the new ABC system. The traditional system used a single driver (direct material costs). The ABC system uses a variety of cost drivers related to the activities used to produce the hoses. The three products involved in the trial run of the ABC system were D-13, K-17, and R-23. The following data relate to these products, and unit data have been rounded to the nearest penny. Product D-13 K-17 R-23 Totals Selling Price per Unit $ 15.60 18.80 19.80 Units Produced Total Costs Allocated: Traditional Costing $ 3,724,000 2,561,500 265,000 380,000 235,000 25,000 $ 6,550,500 Cost per Unit: Traditional Costing $9.80 Cost per Unit ABC Total Cost Allocated: ABC $ 3,572,000 2,491,000 $9.40 10.60 10.60 487,500 $ 6,550,500 19.50 10.90 Required: a. Determine the gross profit margin for each product produced based on the ABC data. b. Determine the gross profit margin for each product produced based on the traditional costing data. Complete this question by entering your answers in the tabs below. Required A Required B Determine the gross profit margin for each product produced based on the ABC data. Product ABC Margin D-13 K-17 R-23