E$4-36.$ ABC; product profitability Outerwear Inc. is concerned about the profitability of its regular gloves. Company managers are considering producing only the top$-$quality, fleece lined, gloves.

The company is currently assigning the $$2,000,000$ of overhead costs to both types of gloves based on machine hours. Of the overhead, $$800,000$ is utilities related and the remainder is primarily related to quality control inspectors' salaries. The following information about the products is also available:

$\backslash$table$[[\sqrt[\phantom{2}]{2},$Regular,Fleece$-$Lined$],[,\backslash$table$[[2,000,000$