b) For each product line, compute operating income using the activity-based costing system

c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).

Ayala 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 labor costs. Total Costs Products Sales Revenue Traditional ABC Product 540X $201,000 $59,000 $48,100 Product 137Y 157,000 50,000 36,000 Product 249S 90,000 19,000 43,900 (a) For each product line, compute operating income using the traditional costing system. Product 540X $ Product 137Y $ Product 249S VA