Inc., makes two types of industrial component parts the B300 and the TS00. An absorption costing income statement for the most recent period is shown: Hi-Tek Manufacturing Inc. Income Statenent Sales cost of goods sold Gross margin Selling and administrative expenses Net operating loss 2,100, 00 , 600,00 500, 000 550,000 s (50, 000) Hi-Tek produced and sold 70,000 units of B300 at a price of $20 per unit and 17,500 units of T500 at a price of $40 per unit. The company's traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the company's two product lines is shown below: B300 500 Total S436, 300 $251,700S 688, 000 Direct materials Direct labor 200,000 $104,000304,000 Manufacturing overhead 608,000 Cost of goods sold 1, 600, 000