#2

McClellan Recreation manufactures and sells two models of poddle boards: Sterter and Pro. The Starter model is a basic boord used for instruction and purchosed by novices. The Pro model is mode with premium materials ond comes with several accessories. The boards are produced to order, and there are no inventories ot the end of the year. The cost occounting system at McClellan ollocates overheod to products bosed on direct labor cost. Overhesd in yeor 1 , which just ended, was $2,626,400. Dato on units sold for yeer 1 along with the unit soles price and unit direct costs for the two models follow: Required: a. Compute product line profits or loss for the Starter model and the Pro model for yeor 1 . b. A study of overheod shows that without the Starter model, overheod would foll to $1,466,000. Assume all other revenues and costs would remsin the some for the Pro model in year 2 Compute product line profits for the Pro model in year 2 assuming the Starter model was not produced or sold. Complete this question by entering your answers in the tabs below. Compute product line profits or loss for the Starter model and the Pro moder for year 1. Note: Loss amounts should be indicated by a minus sian