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Sturdy Industries manufactures and sells three types of desks: Cherry, Mahogany, and Oak. Production takes 50, 40, and 25 machine hours to manufacture 50-unit batches of cherry, mahogany, and oak desks, respectively. The following additional data apply: Mahogany Oak Cherry 1,000 Projected sales in units PER UNIT data: 2,000 1,500 $600 Selling price Direct materials $350 $500 $ 210 $ 150 Direct labor $95 $ 120 $ 75 $ 110 Overhead cost based on direct labor hours (traditional system) $35 $25 $40 Hours per 50-unit batch: Direct labor hours 8 15 Machine hours Setup hours 6 10 0.5 15 10 32 1.25 20 Inspection hours Total overhead costs and activity levels for the year are estimated as follows: Activity. Overhead costs Direct labor hours Activity levels 35,000 hours Setup hours | 1.5 25 0.5 15 1.25 20 Inspection hours Total overhead costs and activity levels for the year are estimated as follows: Activity Overhead costs Activity levels Direct labor hours 35,000 hours Machine hours 53,000 hours Setups $4,375,000 4,375 setup hours Inspections $510,000 85,000 inspection hours $4.885.000 Using an activity based costing system, compute the estimated operating profit per unit for the mahogany style desk. $60.50 $25.50 $42.50 $65.00