Come-On-In Manufacturing produces two types of entry doors: Deluxe and Standard. The assignment basis for support costs has been direct labor dollars. For 2010, Come-On-In compiled the following data for the two products: DeluxeStandard Sales units $50,000 $400,000 Sales price per unit S650.00 $475.00 Direct material and labor costs per unit $180.00 $130.00 Manufacturing support costs per unit $ 80.00 S120.00 Last year, Come-On-In Manufacturing purchased an expensive robotics system to allow for more decorative door products in the deluxe product line. The CFO suggested that an ABC analysis could be valuable to help evaluate a product mix and promotion strategy for the next sales campaign. She obtained the following ABC information for 2010 Activity Cost Drver Cost Total Deluxe Standard Setups of setups 500,000 500 40 100 Machine-related of machine hours S44,000,000 600,000 300,000 300,000 Packing of shipments S 5,000,000 250,000 50,000 200,000 Required: a Using the current system, what is the estimated total cost of manufacturing one unit for each type of door? 2 profit per unit for each type of door? b. Using the current system, estimated manufacturing overhead costs per unit are less for the deluxe door ($80 per unit) than the standard door (S120 per unit). What is a likely explanation for this? c. Review the machine-related costs above. What is a likely explanation for machine-related costs being so high? What might explain why total machining hours for the deluxe doors (300,000 hours) are the same as for the standard doors (300,000 hours)? d. Using the activity-based costing data presented above, activity per unit for cach type of entry door unit of each type of entry door. 1 compute the cost-driver rate for each overbead 2. compute the revised manufacturing overhead cost 3. compute the revised total cost to manufacture one e. Is the deluxe door as profitable as the original data estimated? Why or why not? f What considerations need to be examined when determining a sales mix strategy