Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's two products - Askin and Bskin. The two products are skin care products that require a large amount of research and development and advertising. He received the report below. Ken concluded that Askin was the more profitable product, and that perhaps cost-cutting measures should be applied to the Bskin product. Sales Cost of goods sold Gross profit Askin $ 4,001,000 (2,600,500) Bakin $2,600,500 (2,101,000) $ 1,400,500 $ 499,500 Research and development Selling expenses Profit before taxes Total $6,601,500 (4,701,500) $ 1,900,000 (1,171,000) (130,500) $ 598,500 Seventy-five percent of the research and development and selling expenses were traceable to Askin. Profit before taxes for the Bskin product, per life-cycle income statements, is: