Specialized Products Inc. manufactures customized products for collegiate bookstores. Profits for the current months are \(\$ 22,000\) based on sales of \(\$ 118,000\), less total manufacturing costs of \(\$ 96,000\). Management has a target gross profit margin of \(25 \%\). In order to increase its margin, the company is interested in analyzing its costs using a job order costing system. Management obtained the following information on its five customers, where each customer is considered a separate job:

The Engineering and Design overhead cost pool (Overhead Pool \#1) totals \(\$ 18,000\), and the cost driver is design hours. The Construction overhead cost pool (Overhead Pool \#2) totals \(\$ 78,000\), and the cost driver is machine hours.

a. What is the current gross profit margin?

b. If each customer is considered a job, what is the gross profit margin per job?

c. Considering company profitability, what job(s) require further attention by management?

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Sales.... Design hours Machine hours Customer A Customer B Customer C Customer D Customer E $50,000 100 $45,000 $15,000 $5,000 $3,000 130 65 55 50 455 490 150 60 45