Compute profits for the five sample products under ABC. 

a. First, use the current production volume and number of orders and SKUs from Exhibit 4 to calculate total ABC profits for each product.

 b. Then calculate per-unit (=per-pound) profit by dividing the total by # of pounds.

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Activity Melting - Dep EXHIBIT 6 ABC COST POOLS Driver melt m/c min Driver Vol Amount ($) 5,145,632 2,139,865 Melting- Main melt m/c min 5,145,632 975,130 Melting - Util melt m/c min 5,145,632 2,036,477 Refining - Dep ref m/c min 5,691,042 1,711,892 Refining - main ref m/c min 5,691,042 780,104 Refining - Util ref m/c min 5,691,042 1,745,551 Molding - Dep mold m/c min 4,226,965 427,973 Molding - Main mold m/c min 4,226,965 390,052 Molding - Util mold m/c min 4,226,965 290,925 Rolling - Dep roll m/c min 8,258,382 2,995,811 Rolling - Main roll m/c min 8,258,382 975,130 Rolling - Util roll m/c min 8,258,382 872,776 5 Finishing Dep fin m/c min 4,057,311 1,283,919 Finishing - Main fin m/c min 4,057,311 780,104 Finishing - Util fin m/c min 4,057,311 872,776 Gen & Admin Pounds 50,299,420 5,400,955 O Matl Handing & Set up Orders 57,147 4,936,068 Order Process Prod planning B Tech Support Orders Orders skus 57,147 3,953,709 57,147 3,339,500 6,642 5,766,579 Activity Melting - Dep EXHIBIT 6 ABC COST POOLS Driver melt m/c min Driver Vol Amount ($) 5,145,632 2,139,865 Melting- Main melt m/c min 5,145,632 975,130 Melting - Util melt m/c min 5,145,632 2,036,477 Refining - Dep ref m/c min 5,691,042 1,711,892 Refining - main ref m/c min 5,691,042 780,104 Refining - Util ref m/c min 5,691,042 1,745,551 Molding - Dep mold m/c min 4,226,965 427,973 Molding - Main mold m/c min 4,226,965 390,052 Molding - Util mold m/c min 4,226,965 290,925 Rolling - Dep roll m/c min 8,258,382 2,995,811 Rolling - Main roll m/c min 8,258,382 975,130 Rolling - Util roll m/c min 8,258,382 872,776 5 Finishing Dep fin m/c min 4,057,311 1,283,919 Finishing - Main fin m/c min 4,057,311 780,104 Finishing - Util fin m/c min 4,057,311 872,776 Gen & Admin Pounds 50,299,420 5,400,955 O Matl Handing & Set up Orders 57,147 4,936,068 Order Process Prod planning B Tech Support Orders Orders skus 57,147 3,953,709 57,147 3,339,500 6,642 5,766,579