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pls In its first year or operations a compsny produced and 50 id 70,000 units or Product A at a selling price of $20 per
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In its first year or operations a compsny produced and 50 id 70,000 units or Product A at a selling price of $20 per unit and 17,500 units of Product B at a seling price of $40 per unit. Additional information relating to the company's only two products is shown below: The company created an activity-based costing system that allocated its manufacturing overhead costs to four activities as follows: company's ABC implementation team also concluded that $50,000 and $100,000 of the company's advertising expenses could be directly traced to uct A and Product B, respectively. The remainder of its selling and administrative expenses ($400,000) was organization-sustaining in nature. company uses a traditional cost system that relles on plantwide overhead allocation based on direct labor dollars, what is the total gross margin (or ct margin) earned by Product B Step by Step Solution
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