Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,480, and a new model, the Majestic, which sells for $1,320. The production cost computed per unit under traditional costing for each model in 2020 was as follows. Traditional Costing Royale Majestic Direct materials $660 $420 Direct labor ($20 per hour) 120 100 Manufacturing overhead ($40 per DLH) 240 200 Total per unit cost $1,020 $720 In 2020, Schultz manufactured 25.000 units of the Royale and 10,000 units of the Majestic. The overhead rate of $40 per direct labor hour was determined by dividing total estimated manufacturing overhead of $8,098,800 by the total direct labor hours (200,000) for the two models. Under traditional costing, the gross profit on the models was Royale $460 ($1,480-$1,020) and Majestic $600 ($1.320-$720) Because of this difference, management is considering phasing out the Royale model and increasing the production of the Majestic model.