In its first year of operations a company produced and sold 71,000 units of Product A at a selling price of $30 per unit and 18,500 units of Product B at a selling price of $50 per unit. Additional information relating to the companys only two products is shown below:

	Product A	Product B	Total
Direct materials	$ 441,300	$ 253,700	$ 695,000
Direct labor	$ 210,000	$ 109,000	319,000
Manufacturing overhead			613,000
Cost of goods sold			$ 1,627,000

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)	Manufacturing Overhead	Activity
Product A	Product B	Total
Machining (machine-hours)	$ 214,500	95,000	63,500	158,500
Setups (setup hours)	158,500	85	400	485
Product design (number of products)	121,000	1	1	2
Other (organization-sustaining costs)	119,000	NA	NA	NA
Total manufacturing overhead cost	$ 613,000

The companys ABC implementation team also concluded that $55,000 and $110,000 of the companys advertising expenses could be directly traced to Product A and Product B, respectively. The remainder of its selling and administrative expenses ($410,000) 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 A?

Note: Round your intermediate calculations to 2 decimal places.

A) $1,054,500

B) $1,075,500

C) $1,020,500

D) $988,500