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		$	497,550		Number of batches	930
	Machining			359,445		Machine hours	7,730
	Setups			302,400		Number of setups	160
			$	1,159,395
Finishing	Welding		$	336,600		Welding hours	5,100
	Inspecting			272,250		Number of inspections	825
	Rework			44,200		Rework orders	170
			$	653,050
Support	Purchasing		$	153,000		Purchase orders	510
	Providing space			30,300		Number of units	5,400
	Providing utilities			71,220		Number of units	5,400
			$	254,520

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,800			3,600
Welding hours		1,600			3,500
Batches		465			465
Number of inspections		455			370
Machine hours		2,450			5,280
Setups		80			80
Rework orders		120			50
Purchase orders		340			170

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 $119 for Model 212. 3. If the market price for Model 145 is $770.91 and the market price for Model 212 is $433.40, determine the profit or loss per unit for each model.