Efferson Electronics manufactures two large-screen television models. The 32-inch flat-panel LCD model has been in production since 2009 and sells for $1,000 The company introduced a 42-inch plasma HDTV in 2011; it sells for $1,180 The company's income statement for the current year follows. Based on these results, management has decided to concentrate the company's marketing efforts on the plasma HDTV model and begin to phase out the LCD model Efferson Electronics Income Statement For the Year Ended December 31 32" LCD 42" Plasma Total Sales Revenue Cost of goods sold Gross margin Selling and administrative expenses Operating income Units produced and sold Operating income per unit sold $22,000,000 $ 4,720,000 $26,720,000 11,748,000 3,156,400 14,904,400 10,252,000 1,563,600 11,815,600 5,455,000 997,000 6,452,000 $4,797,000 $ 566,600 $ 5,363,600 22,000 4,000 $218.05 $ 141.65 The unit costs for the two television models are as follows: 32" LCD 42" Plasma Direct materials Direct labor Manufacturing overhead Total unit cost $303 19 212 $534 $643 41 105 $789 Jon Daniel, Efferson's controller, just attended a seminar on activity-based costing and believes the company should implement such a system. He has gathered the following annual information to explore the possibility