Required a. Determine the gross profit margin for each product produced based on the ABC data [(selling price 2 ABC cost per foot) 3 feet produced]. b. Determine the gross profit margin for each product produced based on the traditional costing data [(selling price 2 traditional cost per foot) 3 feet produced]. c. Provide an explanation as to why the cost of M-63 may have increased under the ABC system while the cost of R-150 Selling Allocated: Cost per Foot: Total Cost Costs per Price per Feet Traditional Traditional Allocated: Foot: Product Foot Produced Costing Costing ABC ABC R-150 $14.65 250,000 $2,100,000 $ 8.40 $2,000,000 $ 8.00 R-127 15.60 140,000 1,280,000 9.14 1,235,000 8.82 M-63 18.50 20,000 214,500 10.73 359,500 17.98 Totals $3,594,500 $3,594,500 decreased. d. Assume that Pressure Products expects to produce a gross profit margin on each product of at least 40% of the selling price. Suggest what action management might take with respect to the discoveries resulting from the ABC versus traditional costing analysis.