Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow.

Process	Activity	Overhead Cost				Driver	Quantity
Components	Changeover		$	412,450		Number of batches	730
	Machining			374,868		Machine hours	8,010
	Setups			187,000		Number of setups	100
			$	974,318
Finishing	Welding		$	375,480		Welding hours	6,300
	Inspecting			260,400		Number of inspections	840
	Rework			36,000		Rework orders	180
			$	671,880
Support	Purchasing		$	183,580		Purchase orders	548
	Providing space			31,400		Number of units	7,500
	Providing utilities			113,350		Number of units	7,500
			$	328,330

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,500			5,000
Welding hours		2,400			3,900
Batches		365			365
Number of inspections		480			360
Machine hours		2,650			5,360
Setups		50			50
Rework orders		130			50
Purchase orders		365			183

Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $250 for Model 145 and $122 for Model 212. 3. If the market price for Model 145 is $615.53 and the market price for Model 212 is $334.84, determine the profit or loss per unit for each model.