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Quicksaw Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The company's current saies revenue is 51.5 mallion. Currently, the company's gross profit is 35% of sales, but the company's target gross profit percentage is 45%. The company's current monthly cost of production is 5975,000 , Of this cost, 60% is for labor, 30% is for materials, and 10% is for overthead. The strategic initiative being tested at Quickaw is a redesign of its production process that splits the process into two sequential procedures. The makeup 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 40% direct laboc, 25% direct materials, and 35% overhead. Company management estimates that Procedure 1 costs twice as much as Procedure 2. Required: 1. Determine what the cost of labor, materials; and overhead for both Frocedures 1 and 2 would need to be for the company to meet its target gross profit at the current level of salesi Cost makeus of Braradure 1. 2. The company's actual direct materials cost is $270,000 for Procedure 1. Determine the actual cost of direct labor, direct materiais, and overihead for each procedure, and the total cost of production for each procedure. Cost makeup of Procedure 11 Cost makeup of Procedura 3 . 2. The company's actual direct materials cost is $270,000 for Procedure 1. Determine the actual cost of direct labor, direct materials, and overhead for each procedure. and the total cost of production for each procedure. 3. The company is planning a CSR initiative to reuse some of the indirect materials used in production during Procedure 2. These indirect materials normaliy makeup 75\% of the overhead cost for Procedure 2, but the CSR initiative would reduce the usage of indirect materlals. Dotermine what the maximum new cost of these indirect materiats could be for Procedure 2 If this CSR initiative is expected to enable the company to meet its target gross profit percentage (holding als other conte constant). Maximum new cost of P2 overhead materiais: 3