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.

	Askin				Bskin				Total
Sales	$	4,009,000			$	2,604,500			$	6,613,500
Cost of goods sold		(2,604,500	)			(2,109,000	)			(4,713,500	)
Gross profit	$	1,404,500			$	495,500			$	1,900,000
Research and development										(1,179,000	)
Selling expenses										(134,500	)
Profit before taxes									$	586,500

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:

a. $167,125.

b. $417,125.

c. $514,625.

d. $199,625.

e. $324,625.