Susan Delaney analyzes product profitability of one of her clients using the following data (same data as in the previous question):

	2013	2014	2015
Overhead costs	110,000	120,000	100,000
Direct labor	25,000	30,000	20,000

She is now interested in profitability of Product 2.

	Product 2	Product 3
Sales price (per unit)	92	125
Direct material cost	12	18
Direct labor cost	11	17

For financial reporting purposes, overhead is allocated to products based on direct labor costs using actual overhead rates that vary from year to year. The net operating profit margin is defined as sales minus full product costs (labor, material, and allocated overhead costs). Which of the following statements is true?

Between 2014 and 2015, the net operating margin of Product 2:

Group of answer choices

increased because overhead costs decreased.

remained unchanged.

decreased more than the net operating margin of Product 3.

increased less than the net operating margin of Product 3.

decreased less than the net operating margin of Product 3.