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 $ 476,150 Number of batches 890 Machining 402,050 Machine hours 8,500 Setups 410,300 Number of setups 220 $ 1,288,500 Finishing Welding $ 328,160 Welding hours 5,600 Inspecting 262,400 Number of inspections 820 Rework 29,900 Rework orders 130 $ 620,460 Support Purchasing $ 191,625 Purchase orders 525 Providing space 31,200 Number of units 4,200 Providing utilities 46,500 Number of units 4,200 $ 269,325 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 1,400 2,800 Welding hours 1,800 3,800 Batches 445 445 Number of inspections 470 350 Machine hours 3,150 5,350 Setups 110 110 Rework orders 80 50 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 $113 for Model 212. 3. If the market price for Model 145 is $959.24 and the market price for Model 212 is $527.03, determine the profit or loss per unit for each model.