Answer the following questions using the information below: McGreavy's Griddle produces two product lines: Frozen Pancakes and Frozen Waffles. Product profitability is analyzed as follows: PANCAKES Production and sales 60,000 volume units Selling price $16.00 Direct material $ 2.00 Direct labor $ 4.50 Manufacturing $ 2.00 overhead Gross profit $ 7.50 Selling and administrative $ 4.00 Operating profit $ 3.50 WAFFLES 35,000 units $29.00 $ 5.00 $ 7.20 $ 3.00 $13.80 $ 7.00 $ 6.80 What is projected operating income if direct materials costs of Pancakes increase to $4.00 per unit and direct labor costs of Waffles increase to $8.20 per unit? Under the revised ABC system, overhead costs per unit for the Waffles will be $ 4.00 administrative Operating profit $7.00 $ 6.80 $ 3.50 What is projected operating income if direct materials costs of Pancakes in to $4.00 per unit and direct labor costs of Waffles increase to $8.20 per un Under the revised ABC system, overhead costs per unit for the Waffles will bi $2.47 per unit $2.19 per unit $1.39 per unit $1.60 per unit