Project 3: Costing and Cost Allocations compared to the standard boxes. The operating profit for the standard boxes for 108 million unit sold was $830.4 million annually which is considerably higher compared to the $117 million profit for 18 million unit sold for the deluxe boxes. Based on the total revenue generated by the sales of each boxes, the deluxe boxes only accounted to 22.81% of the operating profit compared to 40.90% of operating profit for the standard boxes. Even though the deluxe boxes are being sold at a considerably higher price point of $28.50 compared to $18.80 for the standard boxes, it is generating lower profit for LGI. As such the rate of return for the deluxe boxes is low. 2. The intern suggested splitting the costs, as you have done in the calculations performed in Tab 2, based on sales volumes. Explain the impact of calculation performed in Tab 2. In your discussions, please elaborate on why the answer has changed from the calculations you performed in Tab 1. Also indicate the benefit of accurate costing when trying to improve operating profit margins. Volume based costing is a traditional approach of cost allocation where the overhead costs are