Bive Skies inc, is a tetall gardening company that is piloting a new strategic initiative aimed at increasing gross profit. Currently, the comsany's gross profit is 23 h of sales, and its target gross profit percentage is 28%. The company's current monthly sales revenue is $510,000, The new initiative being piloted is to produce goods in-house instead of buying them from wholesale suppliersi fes in-house production process has two procedures. The makeup of the costs of production for Procedure 1 is 40% direct labor, 45% direct materials, and 15% overhead, The makeup of the costs of production for Procedure 2 is 50% direct lobot, 25\% direct materials, and 25\% overhead. Assume that Procedure 1 costs twice as much as Procedure 2. 1. Determine what the cost of labor, materials, and overhead for both Procedures 1 and 2 would need to be for the company to meet its target gross profit. Cost makeup of Procedure 1: Cost makeup of Procedure 2: 2. The company's actual Iaboe cost is $102,000 fot Procedure 1. Determine the actual cost of direct labor, direct materials, and overhesd for each procedure, and the total cost of production for each procedure: 2. The company's actual labor cost is $102,000 for Procedure 1. Determine the actual cost of direct labor, direct materials, and overhead for each procedure, and the tota cost of preduction for each procedure. Cost nakeup of Procedure 17 Cost makeup of Procedure 2 I 3. The company is planning a csp initiative to recycle the indirect materials used in production during Procedure 1. The campany is paid for any of the indirect materials it recydes, and it asplies the income from these payments as a direct offset to the cost of the direct materials. These indirect materiais normaly makeup 70% of the overhead cost for Procedure 1. Determine whet the maximum new cost (net of recycling revenues) of these indirect materials couid be for frocedure i if ehis Cs initiative weire to enable the company to meet its target gross protit percentage without changing any other costs. Mavimum nen cost of Pl overhead materials