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 skin. 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 Research and development Selling expenses Profit before taxes Askin Bskin Total $ 4,012,000 $ 2,606,000 $ 6,618,000 (2,606,000) (2,112,000) (4,718,000) $ 1,406,000 $ 494,000 $ 1,900,000 (1,182,000) (136,000) $ 582,000 Seventy-five percent of the research and development and selling expenses were traceable to Askin Profit before taxes for the skin product, per life cycle income statements, is