In its first year of operations a company produced and sold 70,000 units of Product A at a selling price of $20 per unit and 17,500 units of Product B at a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product A Direct materials Direct labor $ 436,300 $200,000 Product B $ 251,700 $ 104,000 Manufacturing overhead Total $ 688,000 304,000 608,000 Cost of goods sold $ 1,600,000 The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: Activity Cost Pool (and Activity Measure) Machining (machine-hours) Setups (setup hours) Manufacturing. Overhead $ 213,500 Product A 90,000 Activity Product B 62,500 Product design (number of products) 157,500 120,000 75 300 1 1 Total 152,500 375 2 Other (organization-sustaining costs) 117,000 NA NA Total manufacturing overhead cost $ 608,000 The company's ABC implementation team also concluded that $37,500 and $112,500 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature. The company's activity-based costing system would report a product margin for Product A of: (Do not round your intermediate calculations.)