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 Bot a selling price of $40 per unit. Additional information relating to the company's only two products is shown below: Product Product B Total Direct materials $ 436,300 $ 249,700 $ 686,000 Direct labor $ 200,000 $ 104,000 304,000 Manufacturing overhead 600,000 Cost of goods sold $ 1,598,000 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) Setup (setup hours) Product design (number of producto) other organisation-sustaining costo) Total manufacturing overhead cost Manufacturing Overhead $ 213,500 157,500 120,000 117,000 $ 608,000 Product A 90,000 75 1 NA Activity Product 3 62,500 300 1 NA Total 152,500 375 2 NA The company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to Product A and Product 8, respectively. The remainder of its selling and administrative expenses ($400,000) was organization sustaining in nature, 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 B