Outerwear Inc. is concerned about the profitability of its regular gloves. Company managers are considering producing only the top-quality, fleece lined, gloves. The company is currently assigning the $2,000,000 of overhead costs to both types of gloves based on machine hours. Of the overhead, $800,000 is utilities related and the remainder is primarily related to quality control inspectors' salaries. The following information about the products is also available. Regular Fleece-Lined Number produced 2,000,000 1,400,000 Machine hours 170,000 30,000 Inspection hours 10,000 50,000 Revenues $6,400,000 $5,600,000 Direct costs $5,000,000 $4,400,000