Way Cool produces two different models of air conditioners. The company produces the mechanical systems in their 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		$	465,450		Number of batches	870
	Machining			390,102		Machine hours	8,230
	Setups			73,000		Number of setups	40
			$	928,552
Finishing	Welding		$	294,240		Welding hours	4,800
	Inspecting			267,300		Number of inspections	810
	Rework			45,000		Rework orders	200
			$	606,540
Support	Purchasing		$	183,000		Purchase orders	488
	Providing space			31,600		Number of units	7,500
	Providing utilities			110,900		Number of units	7,500
			$	325,500

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		2,500			5,000
Welding hours		1,600			3,200
Batches		435			435
Number of inspections		460			350
Machine hours		2,950			5,280
Setups		20			20
Rework orders		140			60
Purchase orders		325			163

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 $210 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $554.48 and the market price for Model 212 is $313.54, determine the profit or loss per unit for each model.