I need help with the question in bold under "QUESTION 1" that accompanies the cells highlighted in blue. I am confused on the formulas.

In Project 3 you will analyse managerial and costing information to improve the company's EBITDA. You will use what you have learned about cost behavior and apply activity-based costing and cost-volume-profit analysis to make recommendations about LGI's operational productivity. Step 1: Use the information you calculated in Project 2 Tab 3 Profit Maximization to populate has Columns C to H in Question 1. Step 2: Assume the company operates for 12 months of the year convert the information you populated in Columns C to H to annual information and populate Columns I to M for both the Standard and Deluxe Boxes. Step 3: Assume for this project that the only variable costs in this company are materials and labour. All other overhead costs will be assumed to be fixed.

The Company currently operates by selling 9 Million Standard Boxes and 1.5 Million Deluxe Boxes per month. The CEO is convinced that under the current cost allocation which allocates fixed costs on a lump sum method (arbitrarily using a monthly allocation basis) , Deluxe boxes is not contributing much to company profit and with recent threats from environmental groups thinks that LGI should consider to no longer produce Deluxe Boxes. Required (place answers in the in the Grey Spaces provided) 1) Calculate how much operating profit each product makes? 2) Calculate the Operating Profit percentage (based on sales)for each product. HINT Use the annual information calculated in Question 1 to complete Question 2

QUESTION 1:

A new intern thinks that the profit for Deluxe Boxes are higher than those calculated using the lump sum method (as in Tab1). The intern suggests calculating the profits using an allocation method for fixed costs based on sales volume( the number of boxes sold) to split the Fixed Costs between the Standard and Deluxe Boxes.

Required: (Complete the blue spaces): 1) First calculate the percenatge portion each product has of the total sales voume 2) How much fixed costs are allocated to each product based on the sales volume method suggested by the intern? 3) Also calculate the new operating profit percentage (based on sales) for each product.