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Product A Product B Total sales volume (units) 360 Revenue Variable costs 200 560 $6,000 $36,000 $42,000 direct materials $1,200 $2,400 $3,600 direct labor $2,400 $6,000 $8,400 Contribution margin $2,400 $27,600 $30,000 Fixed costs $25,200 Profit $4,800 a) Allocate the fixed costs between products A and B. Use direct labor dollars as the cost driver. allocation rate=$ allocated costs for A-$ allocated costs for B-$ per DL$ b) Compute the profit margins for products A and B: profit margin for A-$ profit margin for B-$ Enter negative numbers with a minus sign, i.e., a loss of $1,000 should be entered as-1000, not as (1000) or ($1000) e) Allocate the fixed costs between products A and B, using the number of units as the cost driver. allocation rate=$ allocated costs for A=$ allocated costs for per unit