Durbee Metal Products, Ltd., of Austarlia makes two specialty metal parts- S101 and T107- for Land Rovers. For many years, the company has used a simple plantwide cost driver rate based on direct labor hours in allocating manufacturing support costs. The company also uses an activity-based costing system for internal decision making purposes. After studying the plants manufacturing activities and costs, the management accountant of Durbee has collected the following data for last year:

Item	S101	T107
Units produced and sold	50,000	100,000
Direct labor hours used	100,000	300,000
Direct labor cost	$1,000,000	$4,500,000
Number of times handled	40,000	20,000
Number of parts	12,000	8,000
Number of design changes	2,000	1,000
Number of product setups	8,000	600

The management accountant has also estimated that the following manufacturing support costs and activities will be incurred.

Cost pool	Total activity	Costs
Handling	60,000	$3,000,000
Number of parts	20,000	2,400,000
Design changes	3,000	3,300,000
Setups	14,000	2,800,000
Organization -sustaining costs	Whole plant	2,800,000
Total		$14,300,000

The direct materials cost for product S101 is $120 per unit, while for product T107 it is $140 per unit. The company determines its product prices by adding a 25% markup to its reported product costs.

Required

Compute the product margins for the parts- S101 and T107 under the companys traditional costing system.

Please show all of your calculation in details.