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 Components Changeover Machining Setups Finishing Welding Inspecting Overhead Cost $504,350 Quantity 770 8,430 40 Driver Number of batches 392,838 Machine hours 74,000 Number of setups $971,188 $308,400 315,725 Welding hours Number of inspections. Rework 57,500 Rework orders 6,000 865 230 $681,625 Support Purchasing $198,000 Purchase orders 495 Providing space 30,500 Number of units 5,100 Providing utilities 67,930 Number of units 5,100 $296,430 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,700 3,400 Welding hours 1,800 4,200 Batches 385 385 Number of inspections 485 380 Machine hours 3,150 5,280 Setups 20 20 Rework orders 140 90 Purchase orders 330 165 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 $115 for Model 212. 3. If the market price for Model 145 is $783.05 and the market price for Model 212 is $422.53, determine the profit or loss per unit for each model.