Lens Care Inc. 1.Ch manufactures specialized equipment for polishing optical terses. There are two models - one mainly used for fine eyewear (1-32) and another for lenses used in binoculars, cameras and similar equipment (8-13). The manufacturing cost of each unit is calculated using activity-based costing, using the following manufacturing cost pools: Cost Pools Allocation Base Costing Rate Materials handling Number of parts $ 2.80 per part Manufacturing supervision Hours of machine time $14.84 per hour Assembly Number of parts $ 3.50 per part Machine setup Each setup $56.70 per setup Inspection and testing Logged hours $45.70 per hour Packaging Logged hours $19.70 per hour LCI currently sells the B-13 model for $2.675 and the F-32 model for $2.340. Manufacturing costs and activity usage for the two products are as follows: Direct materials Number of parts Machine hours Inspection time Packaging time Setup 7-32 $164.70 575.76 164 124 8.10 2.10 1.20 1.10 0.70 5 The profit margin based on manufacturing cost for model 32 Direct materials Number of parts Machine hours Inspection time Packaging time Setups $164.70 164 8.10 2.10 1.10 5 $ 75.76 124 4.24 1.20 0.70 4 The profit margin based on manufacturing cost for model F-32 is: Multiple Choice $1,367.28 $1,200.29. $1,124.69 $1,202.78. $1,223.76.