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		$	622,050		Number of batches	870
	Machining			387,079		Machine hours	8,470
	Setups			325,800		Number of setups	180
			$	1,334,929
Finishing	Welding		$	351,920		Welding hours	5,300
	Inspecting			343,200		Number of inspections	880
	Rework			51,300		Rework orders	180
			$	746,420
Support	Purchasing		$	202,125		Purchase orders	525
	Providing space			31,700		Number of units	5,100
	Providing utilities			66,730		Number of units	5,100
			$	300,555

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,700			3,400
Welding hours		1,200			4,100
Batches		435			435
Number of inspections		510			370
Machine hours		3,150			5,320
Setups		90			90
Rework orders		80			100
Purchase orders		350			175

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 $190 for Model 145 and $119 for Model 212. 3. If the market price for Model 145 is $829.98 and the market price for Model 212 is $500.36, determine the profit or loss per unit for each model.