Sammsung Electronics, a division of Crazy Corporation, manufactures two large-screen laptop models: the Amb, which has been produced since 2001 and sells for $900, and the Sup, a new model introduced in early 2011 that sells for $1,140. Based on the following income statement for the year-ended December 31, 2019, senior management at Crazy have decided to concentrate Summsung's marketing resource on the Sup model and to begin to phase out the Amber model.

Use the activity-based costing, calculate the profitability of the Amb and the Sup models. In your answers, you need to show gross margin per unit and percentage and operating income per unit and percentage.

Income Statement For the Fiscal Year Ended December 31, 2019 Sup Total Revenues Cost of goods sold Gross margin Selling and administrative costs Amb $19,800,000 (12,540,000) 7,260,000 (5.830,000) $4,560,000 (3,192,000) 1,368,000 (978,000) $24,360,000 (15,732,000) 8,628,000 (6.808,000) $ 1.820.000 Operating income Units produced and sold Net income per unit sold $ 1,430,000 22,000 $65.00 S 390,000 4,000 $97.50 Unit costs for Amb and Sup are as follows: Amb Sup $584 $208 18 42 Direct materials Direct manufacturing labour Ambience (1.5 hours * $12) Superior (3.5 hours xx 12) Machine costs Ambience (8 hours * 18) Superior (4 hours * $18) Manufacturing overhead other than machine costs 144 72 200 100 Total costs $570 $798 Machine costs include lease costs of the machine, repairs and maintenance Manufacturing overhead was allocated to products based on machine-hours at the rate of $25 per hour Activities Cost Driver (cost allocation bases) Total Activity Costs Cost Driver Consumption Amb Sup Total 1,185,000 385,000 1,570,000 Soldering $ 942,000 Shipments 860,000 16,200 3,800 20,000 Quality control 1,240,000 56,200 21,300 77,500 Number of solder points Number of shipments Number of inspections Number of orders Machine hours Number of set- Purchase orders 950,400 80,100 109,980 190,080 16,000 Machine power Machine setups 57,600 750,000 176,000 16,000 192,000 30,000 14,000 ups $4.800.000 Total manufacturing overhead