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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

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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. The company created an activity-based costing system that allocated all of its manufacturing overhead costs to four activitles as follows: 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 B

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