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	$ 4,013,000	$ 2,606,500	$ 6,619,500
Cost of goods sold	(2,606,500)	(2,113,000)	(4,719,500)
Gross profit	$ 1,406,500	$ 493,500	$ 1,900,000
Research and development			(1,183,000)
Selling expenses			(136,500)
Profit before taxes			$ 580,500

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: