TE Td 2c 2d 3e 3d Kumudu Ltd. produces two models of gaming PCs, Pro and Excel. It is estimated that 60,000 units of Pro and 50,000 units of Excel will be produced and sold in 2020 at a price of $2000 and $2100 respectively. The prime cost per unit of Pro is $1200 and its overhead cost is $500. The prime cost per unit of Excel is $1350 and its overhead cost is $200. Upon examining the estimates, the marketing manager was very impressed with the profitability of Excel and suggested that more emphasis should be placed on producing and selling this product. The manufacturing manager objected, arguing that he did not believe the accountant's relative costing of the gaming PCs due to the use of a conventional costing system. The management accountant agreed that the company should consider adopting an Activity Based Costing (ABC) system. On hearing all the arguments, the general manager asked the management accountant to recalculate the product costs using the ABC technique. The management accountant collected the following projected fixed overhead information for 2020: 4c 26 Activity Activity Costs ($) Pro Excel Activity Driver 9,275,000 No. of setups 50 setups 650 setups Equipment setup Machining 890,000 Engineering 9,389,000 Machine 500,000 MHS 125,000 MHS hours (MH) Engineering 10,000 EHS 5,550 EHS hours (EHS) No. of units 300,000 units 75,000 units packaged Packaging 3,199,000 NOV 16 ... . (a) Using conventional costing data for 2020, calculate the gross profit per unit for each product line [2 marks] Response Template