Perdon Inc. has conducted the following analysis related to its product lines using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labour costs.

(a) For each product line, calculate operating income using the traditional costing system.
(b) For each product line, calculate operating income using the activity-based costing system.
(c) Using the following formula, calculate the percentage difference in operating income for each of Perdon's product lines: [Operating Income (ABC) Operating Income (traditional cost)] / Operating Income (traditional cost). (Round the percentage to two decimals.)
(d) Provide a rationale for why the costs for Product 440X are approximately the same using either the traditional or activity-based costing system.

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Total Costs Products Product 440X Product 137Y Product 249S Sales Revenue $200,000 160,000 80,000 Traditional $50,000 60,000 20,000 ABC $40,000 45,000 45,000