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		$	543,750		Number of batches	870
	Machining			406,307		Machine hours	8,590
	Setups			364,000		Number of setups	200
			$	1,314,057
Finishing	Welding		$	253,500		Welding hours	5,000
	Inspecting			300,600		Number of inspections	835
	Rework			38,000		Rework orders	190
			$	592,100
Support	Purchasing		$	207,375		Purchase orders	525
	Providing space			32,100		Number of units	6,900
	Providing utilities			98,310		Number of units	6,900
			$	337,785

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,300			4,600
Welding hours		1,000			4,000
Batches		435			435
Number of inspections		485			350
Machine hours		3,250			5,340
Setups		100			100
Rework orders		80			110
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 $230 for Model 145 and $121 for Model 212. 3. If the market price for Model 145 is $678.75 and the market price for Model 212 is $385.26, determine the profit or loss per unit for each model.