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Brisky Corporation uses activity-based costing to computeproduct margins. In the first stage, the activity-based costingsystem allocates two overhead accounts-equipment depreciation andsupervisory expense-to three activity cost pools-Machining, OrderFilling, and Other-based on resource consumption. Data to performthese allocations appear below:

Overhead costs:
Equipment depreciation	$46,000
Supervisory expense	$12,200

Distribution of Resource Consumption AcrossActivity Cost Pools:
	Activity Cost Pools
	Machining	Order Filling	Other
Equipment depreciation	0.50	0.20	0.30
Supervisory expense	0.50	0.10	0.40

In the second stage, Machining costs are assigned to productsusing machine-hours (MHs) and Order Filling costs are assigned toproducts using the number of orders. The costs in the Otheractivity cost pool are not assigned to products.

Activity:
	MHs (Machining)	Orders (Order Filling)
Product I3	5,940	124
Product U8	14,600	923
Total	20,540	1,047

Finally, sales and direct cost data are combined with Machiningand Order Filling costs to determine product margins.

Sales and Direct Cost Data:
	Product I3	Product U8
Sales (total)	$66,500	$61,600
Direct materials (total)	$30,700	$23,100
Direct labor (total)	$19,300	$35,200

What is the product margin for Product I3 under activity-basedcosting? (Round your intermediate calculations to 2 decimalplaces and final answer to the nearest dollar amount.)

$2,609

$11,391

$7,611

$6,831