Refer to the information about Voss Visuals in Problem 7-20. Voss's managers have gathered the following information about selling and administrative costs.

Required
a. Using the information given here and in Problem 7-20, calculate the product margin per unit for tablets and books using the traditional costing system.
b. Prepare a report like the one in Exhibit 7-12, Panel A.
c. Using the information given here and in Problem 7-20, calculate the product margin per unit for tablets and books using the activity-based costing system. Be sure to include selling and administrative costs.
d. Prepare a report like the one in Exhibit 7-12, Panel B.
e. Based on your analysis, what actions might the managers consider taking to improve the profitability of books and of the company overall?

Activity Pool Total Cost Shipping Advertising Commissions Cost Driver $240,000 Ponds shipped 168,125 5% of sales price 57,500 Number of mailings Total selling and administrative costs $565,625 Weight Advertising mailings Sales commission Selling price per unit Tablets 20,000 pounds 125,000 5% of sales price $35 Books 40,000 pounds 100,000 5% of sales price $75