EZ-Seat Inc., manufactures two types of reclining chairs, Standard and Ergo. Ergo provides support for the body through a complex set of sensors and requires great care in manufacturing to avoid damage to the material and frame. Standard is a conventional recliner, uses standard materials, and is simpler to manufacture. EZ-Seat's results for the last fiscal year are shown in the statement below EZ-SEAT, INC Income Statement Ergo Total Sales revenue Direct materials Direct labor Overhead costs Standard $5,000,000 1,500,000 500,000 $7,000,000 2,100,000 900,000 $2,000,000 600,000 400,000 Administration Production setup Quality control Distribution 540,000 465,000 300,000 693,000 $2,002,000 Operating profit