Question 4 Gel-Coat Sdn Bhd produces 50,000 units of product A and 5,000 units of product B at a direct materials cost of RM3 per unit. Product A requires 3 minutes whereas product B requires 30 minutes of direct labour per unit (at RM20 per hour). Other costs (tooling, setup, and equipment depreciation and maintenance) for this period amount to RM60,000. The profit margin is 50% for each product a) If these "other costs" are allocated on the basis of direct labour hours, what is the unit cost of each product? At what price each product is being sold? b) Further investigation indicates that production of product A is highly automated and this contributes to 90 percent of the "other costs". What do the unit costs now become, for each product A and B? Recalculate the profit margin for each product if their prices have not changed. c) What difference might this make in Gel-Coat's actions