Need help solving this problem, after problem on image, I need the following two questions answered after the image.

1. Describe the production characteristics (for example, high-volume, specialty, etc.) of the three products manufactured by Hydraulic Hoses, Inc. in the case study.

2. Describe the production characteristics (for example, high volume, specialty, etc.) of the three products manufactured by Hydraulic Hoses, Inc.

ATC 5-1 Business Applications Case Using ABC to improve product costing Hydraulic Hoses, Inc. produces specialized industrial hoses for applications such as high-pressure hydraulics and the transference of highly corrosive materials. The company recently implemented an ABC system for three of its products and is interested in evaluating its effectiveness before converting to an ABC system for all of its products. To perform this evaluation the company has compiled data for the three products using both the traditional system and the new ABC system. The traditional Ef 250 Chapter 5 system uses a single driver (direct materials costs). The ABC system uses a variety of cost drivers related to the activities used to produce the metal products. The three products involved in the trial run of the ABC system were D-13, K-17, and R-23. The following data relate to these products. Selling Price per Total Costs Allocated: Traditional Costing Cost per Unit: Traditional Costing Total Cost Allocated: ABC Cost per Unit Units Produced Product 8.40 9.14 10.73 $2,000,000 8.00 D-13 K-17 R-23 Totals $14.65 15.60 18.50 250,000 $2,100,000 140,000 ,280,000 0,000 214,500 $3,594,500 1,235,000 359,500 $3,594,500 2 17.98 Required Determine the gross profit margin for each product produced based on the ABC data l(Selling price-ABC cost per unit) Unit produced. Determine the gross profit margin for each product produced based on the traditional costing data [selling price-Traditional cost per unit) Unit produced] Provide a possible explanation as to why the cost of R-23 increased under the ABC system while the cost D-13 decreased. Suggest what action management might take with respect to the discoveries resulting from the ABC versus traditional costing analysis. Assume that Hydraulic Hoses expects to produce a gross profit margin on each product of at least 40 percent of the selling price. a. b. c. d