McNuity. Inc, produces desks and chalis. A new CFO has just been hired and announces a new policy that if a product cat earn a margin of at least 40 percent. It will be dropped. The margin is computed as product gross profit divided by reported product cost Manufacturing overhead for year 1 totaled $1,105,000. Overhead is allocated to products based on direct labor cost. Data for year 1 show the following. Sales revenue Directematerials Direct labor Chairs $1,679,40e 596, ce 200.000 32,939, 150 920, eee 110, Required: 2-1. Based on the CFO's new policy, calculate the profit margin for both chairs and desks. 3-2. Which of the two products should be dropped? b. Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair product. The company cost analyst estimates that overhead without the chair line will be $770,000. The revenue and costs for desks are expected to be the same as last year. What is the estimated margin for desks in year 22 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Based on the CFO's new policy, calculate the profit margin for both chairs and desks. Profit Margin Chairs 96 Desks 96 FR Req A2 > Complete this question by entering your answers in the tabs below. Req A1 Reg A2 Reg B Regardless of your answer in requirement (a), the CFO decides at the beginning of year 2 to drop the chair prod company cost analyst estimates that overhead without the chair line will be $770,000. The revenue and costs fo expected to be the same as last year. What is the estimated margin for desks in year 22 (Enter your answer as a rounded to 1 decimal place (i.e., 32.1).) Estimated margin for desks - Year 2 %