Get Hitched Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company$$s current sales revenue is $$2,100,000.$ Currently, the company$$s gross profit is $35\%$ of sales, but the company$$s target gross profit percentage is $40\%.$ The company$$s current monthly cost of production is $$1,365,000.$ Of this cost, $60\%$ is for labor, $20\%$ is for materials, and $20\%$ is for overhead.

The strategic initiative being tested at Get Hitched is a redesign of its production process that splits the process into two sequential procedures. The make up of the costs of production for Procedure $1$ is currently $50\%$ direct labor, $45\%$ direct materials, and $5\%$ overhead. The makeup of the costs of production for Procedure $2$ is currently $55\%$ direct labor, $25\%$ direct materials, and $20\%$ overhead. Company management estimates that Procedure $1$ costs twice as much as Procedure $2.$

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 at the current level of sales.

Cost makeup of Procedure $1$:

Direct Labor

q

Direct Materials

Overhead

Total

Cost makeup of Procedure $2$:

Direct Labor

s

Direct Materials

Overhead

Total