Solar Salt Company has two divisions. Sales, direct materials cost, and direct labor cost data for Solar Salts two divisions are not available. However, manufacturing overhead and gross profit data for the two divisions are available, as follows.

	Agricultural Products	Retail Products
Manufacturing overhead*	$450,000	$250,000
Gross profit	150,000	100,000

*Manufacturing overhead is allocated to production based on the amount of direct labor cost. Solar Salt has determined that its total manufacturing overhead cost of $700,000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concerning the manufacturing overhead costs, the annual number of units produced, production batches, and number of product lines in each division.

	Total Manufacturing Overhead Costs	Agricultural Products	Retail Products
Unit-level overhead	$210,000	7,500 units	13,500 units
Batch-level overhead	280,000	50 batches	90 batches
Product line overhead	210,000	10 lines	18 lines
	$700,000

How much will GROSS PROFIT in each of the divisions be if Solar Salt adopts an activity-based costing system?

A. Agricultural, $50,000; Retail, $200,000

B. Agricultural, loss of $50,000; Retail, $300,000

C. Agricultural, $350,000; Retail, loss of$100,000

D. Agricultural, $350,000; Retail, $100,000

E. Agricultural, $350,000; Retail, $300,000

F. Agricultural, $250,000; Retail, $450,000

G. Agricultural, loss of $50,000; Retail, loss of$100,000

H. Agricultural, $150,000; Retail, $100,000