Johnson & Johnson (J&J) has the following cost information for its product lines: Baby Shampoo, Band-Aid, and Tylenol:

• Baby Shampoo: Direct Materials: $5,000,000; Direct Labor: $2,500,000; Overhead Rate: 150%
• Band-Aid: Direct Materials: $4,000,000; Direct Labor: $2,000,000; Overhead Rate: 150%
• Tylenol: Direct Materials: $6,000,000; Direct Labor: $3,000,000; Overhead Rate: 150%

Requirements:

1. Compute the total manufacturing cost for each product line.
2. Determine the overhead costs applied to each product line.
3. Prepare a detailed cost analysis for J&J.
4. Calculate the profit margin if the selling prices are $10, $15, and $20 per unit for Baby Shampoo, Band-Aid, and Tylenol, respectively.
5. Discuss the implications of cost allocation on pricing and profitability.