In its first year of operations a company produced and sold 70,200 units of Product...

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In its first year of operations a company produced and sold 70,200 units of Product A at a selling price of $22 per unit and 17700 units of Product 8 at a seling price of $42 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: The company's ABC implementation team also concluded that $51,000 and $102,000 of the companys advertising expenses could be directiy traced to Product A and Product 8, respectively. The remainder of its selling and admistrative expenses ($402.000) was organization-sustaining in nature. If the company uses o traditional cost system that relies on plantwide overheod allocation based on direct labor dollars, what is the total gross margin for product marginv earned by Product A? Note: Round your intermediate calculations to 2 decimal places. Multiple Choice \$454,140 $505:40 $484,940 $423,740

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