Power electronics manufactures portable power supply units. Power has recently decided to use an activity based approach to cost its products. Production line setups is a major activity at Power. Next year Power expects to perform 2,000 setups at a total cost of $4,200,000. Power plans to produce 800 units of product EP 150, which will require two setups.

REQUIRED

How much setup cost willl be allocated to each unit of EP 150 produved?