In its first year of operations a company produced and sold 71,800 units of Product A at a selling price of $38 per unit and 19,300 units of Product B at a selling price of $58 per unit. Additional information relating to the company's only two products is shown below. Direct materials Direct labor Manufacturing overhead Cost of goods sold Product A Product B $ 445,300 $ 255,300 $ 218,000 $ 113,000 Total $ 700,600 331,000 617,000 $ 1,648,600 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 $ 215,300 Product A 99,000 Activity Product B. 64,300 Product design (number of products) 159,300 121,800 93 480 1 1 Total 163,300 573 2 Other (organization-sustaining costs) 120,600 NA NA NA Total manufacturing overhead cost $ 617,000 The company's ABC Implementation team also concluded that $59,000 and $118,000 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 ($418,000) was organization- sustaining in nature. If the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor dollars, what is the total gross margin (or product margin) earned by Product A? (Round your intermediate calculations to 2 decimal places.) Multiple Choice $1,637,820 $1,567,020 $1,659,620 $1,600,620