FederationScreen is a growing television manufacturer in Australia. The company has two main products: Model A (since 2011) and Model B (introduced in 2019). Unit selling prices for Model A and Model B are $820 and $1,320, respectively. The company's CEO, Ferdinand Henry, recommended that the company should focus its marketing resources on Model B while considering phasing out Model A. The company has used a traditional costing system as a basis for pricing decisions. The following cost information was used over the past year: Model A Model B Direct materials per unit $225 $642 Direct labour hours per unit 1.5 3.5 Machine hours per unit 9 5 Units produced 18,000 3,500 Hourly wage for direct labour is $14 per hour. Manufacturing overhead costs were estimated at $5,760,000 and were allocated on the basis of machine hours. The nancial controller, Daniel Nguyen, recommended that the company should employ activity-based costing analysis to obtain a better picture of the true manufacturing costs of the two models. He collected the following data: Activity Activity driver Estimated costs Soldering number of solder joints $1,130,400 Shipments number of shipments $1,032,000 Quality control number inspections 5519488300 Purchase orders number of orders $1,140,480 Machining machine hours $69,120 Machine set-ups number of set-ups 339005000 Total overhead costs: $5,760,000 Quantity of activity driver consumed: Activity Model A Model B Total Soldering 1,185,000 385,000 1,570,000 number of solder joints Shipments 16,200 3,800 20,000 number of shipments Quality control 56,200 21,300 77,500 number inspections Purchase orders 80,100 109,980 190,080 number of orders Machining 176,000 16,000 192,000 machine hours Machine set-ups 16,000 14,000 30,000 number of set-ups Selling and administrative expenses are $285 per unit sold for Model A and $180 per unit sold for Model B