1. Verify the overhead cost per unit reported by the consulting group using direct labour hours to assign overhead. Compute the $per unit gross margin per product. 2. Using Activity Based Costing recompute the unit cost of each product and the $/per unit gross margin for each product. 3. Should the company switch its emphasis from the high volume product to the low volume product? Why? Comment on the validity of the plant manager's concern that competitors are selling below the cost of producing compound V-312. 4. Explain the apparent lack of competition for T-415. Comment also on the willingness of customers to accept a 25% increase in price for this compound. 5. Describe what actions you would take based on the information provided by the activity based unit costs.