Harbour Company makes two models of electronic tablets, the Home and the Work. Basic production information follows:

	Home			Work
Direct materials cost per unit	$	44		$	71
Direct labor cost per unit		23			35
Sales price per unit		369			573
Expected production per month		740	units		410	units

Harbour has monthly overhead of $187,410, which is divided into the following cost pools:

Setup costs	$	86,110
Quality control		58,800
Maintenance		42,500
Total	$	187,410

The company has also compiled the following information about the chosen cost drivers:

	Home	Work	Total
Number of setups	38	71	109
Number of inspections	310	390	700
Number of machine hours	1,100	1,400	2,500

1. Compare the gross margin of each product under the traditional system and ABC. (Round your answers to 2 decimal places.)

	Home	Work
Gross Margin (Traditional)
Gross Margin (ABC)