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		$	496,650		Number of batches	770
	Machining			381,049		Machine hours	8,230
	Setups			408,100		Number of setups	220
			$	1,285,799
Finishing	Welding		$	301,950		Welding hours	5,500
	Inspecting			308,100		Number of inspections	790
	Rework			46,000		Rework orders	200
			$	656,050
Support	Purchasing		$	163,480		Purchase orders	488
	Providing space			30,600		Number of units	7,500
	Providing utilities			109,650		Number of units	7,500
			$	303,730

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,500			5,000
Welding hours		2,400			3,100
Batches		385			385
Number of inspections		460			330
Machine hours		2,950			5,280
Setups		110			110
Rework orders		140			60
Purchase orders		325			163

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 $260 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $695.87 and the market price for Model 212 is $344.94, determine the profit or loss per unit for each model.