TB MC Qu. 13-35 Ken Yalters, the COO of Fresh Skin, asked ... Ken Yalters, the COO of FreshSkin, asked his cost management team for a product line profitability analysis for his firm's two products - Askin and Bskin. The two products are skin care products that require a large amount of research and development and advertising. He received the report below. Ken concluded that Askin was the more profitable product, and that perhaps cost-cutting measures should be applied to the Bskin product Sales Cost of goods sold Gross profit Research and development Selling expenses Profit before taxes Askin Bskin Total $ 4,004,000 $2,602,000 $ 6,606,000 (2,602,000) (2,104,000) (4,706,000) $ 1,402,000 $ 498,000 $ 1,900,000 (1,174,000) (132,000) $ 594,000 Seventy-five percent of the research and development and selling expenses were traceable to Askin. Profit before taxes for the Askin product, per life-cycle Income statements, is: Multiple Choice $205,000 $520,000 O O $330,000 $172,500. O O $422.500