Spendlove Corporation has provided the following data from its activity-based costing system:
The company makes 430 units of product S78N a year, requiring a total of 1,120 machine-hours, 40 orders, and 30 inspection-hours per year. The product's direct materials cost is $49.81 per unit and its direct labor cost is $12.34 per unit. The product sells for $129.90 per unit.
According to the activity-based costing system, the product margin for product S78N is:
A) $6,180.50
B) $29,132.50
C) $4,116.50
D) $5,161.30