1. According to Exhibit 1 of the case, Wilkerson Company has a gross margin of $617,250 when the Traditional Cost System is used. Also, according to Exhibit 2 of the case, using the Traditional Cost System, valves have a 34.9% gross margin, pumps have a 19.5% gross margin, and flow controllers have a 41.0% gross margin. Table 1 on the next page shows the cost pool/cost driver information for an Activity Based Costing (ABC) system for Wilkerson. [It also is worksheet #1 – ABC of the accompanying Excel worksheet.] Using this information, calculate the gross margin % for each product using ABC. (You may want to use worksheet #2 – Three Products from the accompanying Excel worksheet as a starting point.)