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 sales revenue is \$1,500,000. Currently, the company's gross profit is 35% of sales, but the company's target gross profi percentage is 4006 . The company's current monthly cost of production is $975,000. Of this cost, 50% is for labor, 30% is for materlals, and 20% is for overhead. The strategic initiative being tested at Quicksaw is a redesign of its production process that splis the process into fwo 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 55% direct labor, 25% direct materials, and 20% overhead. Company management estimstes that Procedure 1 costs twice as much as Procedure 2. Required: 1. Determine what the cost of iabor, materials, and overhead for both Procedures 1 and 2 would need to be for the company to meet its target gross profit at the current level of sales. 2. The company's actual direct materials cost is $279,000 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. 2. The company's actual direct materials cost is $279,000 for Procedure 1. Determine the actual cost of direct laber, direct materials, and overhead for each procedure, and the total cost of production for each procedure. 3. The company is planning a CSA initiative to reuse some of the indirect materials used in production duning Procedure 2. These indirect materiais normaly makeup 60% of the overhesd cost for Procedure 2, but the CSA initative would reduce the usage of indirect materiais. Determine what the maximum new cont of these indirect materials could be for Procedure 2 if this CSR initiative is expected to enable the company to meet its target gross profit percentage (helding all other costs constant). Maximum new cost of P2 overhesd materials: 1