Company A calculated the following information under traditional and activity-based costing for the production and sale of 1,000 units of Product B:

Traditional ABC

Sales $100,000 $100,000

Cost of goods sold $70,000 $110,000

Gross margin $30,000 ($10,000)

Which decision should be made about the selling price of Product B?

The answer is the price of product B should be increased but why? Please explain in detail and possibly give a scenario where the price of product B should be decreased.