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Hi-Tek Manufacturing Inc. makes two types of industrial component partsthe B300 and the T500. An absorption costing income statement for the most recent period is shown below:

Hi-Tek Manufacturing Inc. Income Statement
Sales	$	1,772,200
Cost of goods sold		1,247,053
Gross margin		525,147
Selling and administrative expenses		590,000
Net operating loss	$	(64,853)

Hi-Tek produced and sold 60,200 units of B300 at a price of $21 per unit and 12,700 units of T500 at a price of $40 per unit. The companys traditional cost system allocates manufacturing overhead to products using a plantwide overhead rate and direct labor dollars as the allocation base. Additional information relating to the companys two product lines is shown below:

	B300		T500		Total
Direct materials	$	400,700	$	162,800	$	563,500
Direct labor	$	120,400	$	42,200		162,600
Manufacturing overhead						520,953
Cost of goods sold					$	1,247,053

The company has created an activity-based costing system to evaluate the profitability of its products. Hi-Teks ABC implementation team concluded that $57,000 and $106,000 of the companys advertising expenses could be directly traced to B300 and T500, respectively. The remainder of the selling and administrative expenses was organization-sustaining in nature. The ABC team also distributed the companys manufacturing overhead to four activities as shown below:

	Manufacturing		Activity
Activity Cost Pool (and Activity Measure)	Overhead		B300	T500	Total
Machining (machine-hours)	$	209,473	90,700	62,200	152,900
Setups (setup hours)		150,880	78	290	368
Product-sustaining (number of products)		100,200	1	1	2
Other (organization-sustaining costs)		60,400	NA	NA	NA
Total manufacturing overhead cost	$	520,953

Required 1. Compute the product margins for the B300 and T500 under the company's traditional costing system. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole dollars B300 T500 Total 0 Product margin

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