Before Michael's product was launched, the product line managers were receiving a yearly bonus based on the gross profit margin % of their product lines. The gross margin % was calculated using a joint cost allocation based on the number of products produced by each line. Michael has done some preliminary calculations and based on the current production levels, he has suggested in this meeting that the accounting department change the joint cost allocation to use the weight of the products produced instead. He explained that previoulsy when there was scrap rubber the had no value, it made sense to allocate the costs based on the number of products but now that the scrap rubber is being used, it makes more sense to use the physical weight of each product for the allocation. Finn is in complete agreement with Michael's proposal and Brenda is not quite sure if it is a good idea or not. The CFO stated that the gross margin target for the entire company was increasing to 30%. He is looking for ideas from the product line managers and the accounting team on how the division could achieve this. He mentioned that a new supplier of the rubber compound used in the production process has come to him with an offer to purchase scrap rubber from FPDivat a price of $.06 per gram. Previously, before the launch of the toy mice product, the scrap rubber was not worth anything and was thrown out. The CFO asked if it still made sense to spend more money each month to create the mice or if they should stop the production of the mice and sell the scrap instead. He wondered if this would help the division achieve the new gross margin target. At the end of the meeting, Cecily asked the accounting team to do some analysis and create a report and presentation addressing the following questions raised at the meeting: 1) What cost allocation method should be used