Lens Care Inc.(LCI)manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32)and another for lenses used in binoculars,cameras,and similar equipment (B-13).
The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools:
LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows:
The profit margin based on manufacturing cost for model B-13 is:

Question

Lens Care Inc.(LCI)manufactures specialized equipment for polishing optical lenses.There are two models - one mainly used for fine eyewear (F-32)and another for lenses used in binoculars,cameras,and similar equipment (B-13).
The manufacturing cost of each unit is calculated using activity-based costing,using the following manufacturing cost pools: 
LCI currently sells the B-13 model for $1,775 and the F-32 model for $1,220.Manufacturing costs and activity usage for the two products are as follows: 
The profit margin based on manufacturing cost for model B-13 is:

Quizplus · Accepted Answer

The manufacturing cost of B-13 model = $890.32 + ($3.60 × 8,120) + ($20.50 × 700) + ($15.50 × 600) + ($22.80 × 330) = $890.32 + $29,232 + $14,350 + $9,300 + $7,524 = $51,296. 
Profit margin based on manufacturing cost = Selling price - Manufacturing cost = $1,775 - $51,296 = -$49,521. Therefore, there is a loss on the sale of the B-13 model.