Using the information from Review 4-4, answer the following questions.

a. Determine the total profit for standard items and custom items using the current allocation system.

b. Determine the total profit for standard items and custom items if more appropriate cost drivers were used.

c. What is the profit margin (Net income \(\div\) Revenues) for standard items and for custom items under the assumptions in part \(a\) ?

d. What is the profit margin for standard items and for custom items under the assumptions in part \(b\) ?

e. What is the difference between the overall profit calculated in part \(a\) and in part \(b\) ?

Data From Review 4-4:-

Manufacturing Inc. is concerned about the profitability of orders for athletic apparel. Orders consist of standard items and custom items. Custom orders allow the customer to add a fogo or request a non-standard color. The company is currently assigning the \($1,200,000\) of overhead costs to its products based on machine hours. Of the overhead, \($480,000\) is utilities related and the remainder is primarily related to quality control costs. The following information about the products is also available.