Real Cool produces two different models of air conditioners. The company produces the mechanical systems in their components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Components Changeover Quantity $ 588,950 Number of batches 870 Machining 389,025 Machine hours 8,190 Setups 189,580 Number of setups 100 $1,087,475 Finishing Welding $ 301,950 Welding hours 5,500 Inspecting 285,250 Number of inspections Rework 38,400 Rework orders $ 625,600 Support Purchasing $ 166,500 Purchase orders Providing space 30,700 Number of units 5, 100 Providing utilities 63,650 Number of units $ 260,850 815 160 555 5, 100 Additional production information concerning its two product lines follows. Model 145 Units produced Model 212 1,700 3,400 Welding hours 1,400 Batches 4,180 435 435 Number of inspections 465 350 Machine hours 2,850 5,340 Setups 50 58 Rework orders 128 40 Purchase orders 370 185 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $190 for Model 145 and $112 for Model 212. 3. Assume if the market price for Model 145 is $855 and the market price for Model 212 is $530, determine the profit or loss per unit for each model