Consider a company that manufactures three different products. Selected information about these three products (and total production) is presented below:

Information (per unit)

	Product 1	Product 2	Product 3
Sales Price Per Unit	$350	$250	$1,450
Direct Materials Cost Per Unit	$200	$100	$1,200
Direct Labor Cost Per Unit	$50	$60	$100

Information (In total)

	Prodcut 1	Product 2	Product 3	Total
Units Produced	4,000	5,000	1,000	10,000
Direct Materials Cost	$800,000	$500,000	$1,200,000	$2,500,000
Direct Labor Cost	$200,000	$300,000	$100,000	$600,000

The company has $1,000,000 of indirect manufacturing (overhead) costs related to the production of all three products.

1. Calculate the gross profit (per unit) for Product 2, assuming the company uses a single cost pool to allocate the $1,000,000 of overhead costs, with Units Produced as the cost driver.

2. Calculate the gross profit (per unit) for Product 2 , assuming the company uses two cost pools. Pool A accounts for $400,000 of costs and uses direct material cost as the cost driver. Pool B accounts for the other $600,000 of costs and uses Direct Labor Cost as the Cost Driver.