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In its first year of operations a company produced and sold 71,600 units of Product A at a selling price of $36 per unit and

image text in transcribedimage text in transcribed In its first year of operations a company produced and sold 71,600 units of Product A at a selling price of $36 per unit and 19,100 units of Product B at a selling price of $56 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 $58,000 and $116,000 of the company's advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and adminlstrative expenses ($416,000) was organization-sustaining in nature. If the company uses a traditional cost system that relies on plantwide overhead allocation bosed on direct labor dollers, what is the total gross margin (or product margin) earned by Product A? Note: Round your intermediate calculations to 2 decimal places. 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) Product A? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice $1,453,220 $1,511,220 $1,489,620 $1,420,020

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