QUESTION 5 Solar Salt has determined that its total manufacturing cost of $700.000 is a mixture of unit-level costs, batch-level costs, and product line costs. Solar Salt has assembled the following information concerning the manufacturing costs and the driver used to allocate the costs in each activity pool (units, batches, and lines respectively). Total Manufacturing Costs Agricultural Products Retail Products Unit-level costs $210,000 8,000 units 12,000 units Batch-level costs 280,000 50 batches 70 batches Product line costs 210,000 8 lines 12 lines $700,000 Revenues for the Agricultural Products totaled $600,000. Revenue for Retail Products totaled $350,000. How much will gross profit in the agriculture division be if Solar Salt adopts an activity-based costing system? (Please round your answer to the nearest dollar at the end of your answer.) QUESTION 6 Volokh sells caricatures of famous people, reproduced on high-quality paper using a sophisticated lithograph printer. A single caricature can be reproduced up to 1,000 times without losing quality and market value, though demand is usually much lower. Volokh spends considerable time studying a particular celebrity to determine exactly how to capture their most notable characteristics (0.g., Barack Obama's ears), which allows him to make a series of caricatures that capture the subject in different events and settings (e.g., the inauguration, giving a speech, playing basketball). Among other items, Volokh sells 5,000 reproductions of Albert Einstein and 5,000 reproductions of Justin Bieber. However, the Einstein reproductions are all of a single caricature (Einstein riding a bicycle), while the Bieber reproductions include many different caricatures (laughing, dancing, looking soulful). For this question, order the costs below to create the most appropriate cost hierarchy, where #1 is the highest cost hierarchy and W3 is the lowest cost hierarchy. - - - Cost of drawing a caricature Cost of studying a celebrity Cost of reproducing a caricature