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 ptice 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 its manufacturing overhead costs to four activities as follows: 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 B, respectively. The remainder of its selling and administrative expenses ($400.000) 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 B? If the company uses a traditional cost system that relies on plantwide overhead allocation based on direct labor doliars, what is the total gross margin (or product margin) earned by Product B? Multiple Choice $36,300 $159.200 $139,100 $59,200