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		$	491,550		Number of batches	870
	Machining			378,624		Machine hours	8,160
	Setups			330,300		Number of setups	180
			$	1,200,474
Finishing	Welding		$	213,720		Welding hours	3,900
	Inspecting			283,900		Number of inspections	835
	Rework			55,000		Rework orders	200
			$	552,620
Support	Purchasing		$	155,925		Purchase orders	495
	Providing space			30,200		Number of units	5,700
	Providing utilities			76,960		Number of units	5,700
			$	263,085

Additional production information concerning its two product lines follows.

	Model 145			Model 212
Units produced		1,900			3,800
Welding hours		800			3,100
Batches		435			435
Number of inspections		465			370
Machine hours		2,850			5,310
Setups		90			90
Rework orders		120			80
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 $180 for Model 145 and $113 for Model 212. 3. If the market price for Model 145 is $663.73 and the market price for Model 212 is $402.42, determine the profit or loss per unit for each model.