Swifty-Jones manufactures two large-screen television models. The 65-inch flat-panel LED model has been in production since 2012 and sells for $900. The company introduced a 55-inch 4K Ultra HD in 2016; it sells for $1,190. The company's income statement for the current year follows. Based on these results, management has decided to concentrate the company's marketing efforts on the 4K Ultra HD model and begin to phase out the LED model. Swifty-Jones Income Statement For the Year Ended December 31 65" LED 55" 4K Ultra HD Total Sales Revenue $ 20,700,000 $ 4,760,000 $25,460,000 Cost of goods sold 12,581,000 3,148,400 15,729,400 Gross profit 8,119,000 1,611,600 9,730,600 Selling and administrative expenses 5,341,000 997,000 6,338,000 Operating income $ 2,778,000 $ 614,600 $ 3,392,600 Units produced and sold 23,000 4,000 Operating income per unit sold $ 120.78 $ 153.65 The unit costs for the two television models are as follows: Direct materials Direct labor Manufacturing overhead Total unit cost 65" LED 55" 4K Ultra HD $310.00 $640.00 18.00 42.00 219.00 105.10 $547.00 $787.10 Mark Renn, Swifty-Jones' controller, just attended a seminar on activity-based costing and believes the company should implement such a system. He has gathered the following annual Information to explore the possibility, tv @ MacBook Pro R Q Search or type URL & 7 C 9 + N 5 6 00 O { - T Y 0 [ G H K L MacBook Pro Search or type URL 888 + & 7 +00 5 6 9 0 T Y U 0 P { [ 11 G H K. L