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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 bejow: The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: The company's ABC implementation team also conciuded that $50.000 and $100,000 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 ($400.000) was organization-sustaining in nature. The company's activity-based costing system would report a product margin for Product A of: Multiple Cholce $546,200 $526,200 5496,200 $515,200

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