Strategic initiatives and CSR Blue Skies inci is a retail gardening company that is piloting a new strategic initiative aimed at increasing gross profit. Currently, the company's gross profit is 23% of sales, and its target gross profit percentage is 28%. The company's current monthly sales revenue is $570,000. The new initiative being plioted is to produce goods in-house instead of buying them from wholesale suppliers. Its in house production process has two procedures. The inakeup of the costs of production for Procedure 1 is 40% direct labor, 45% direct materials, and 15% overhead. The makeup of the costs of production for Procedure 2 is 50% direct labor, 25% direct materials, and 25% overhead. Assume that Procedure 1 costs twice as much as Procedure 2. Required: 1. Determine what the cost of labor, materials, and overhead for both procedures 1 and 2 would need to be for the company to meet its target aross profit. 2. The company's actual labor cost is $114,000 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. 3. The compariy is planning a CSR initiative to recycle the Indirect materials ustid in production during Procedure 1. The company is paid for any of the indirect materiais it recycles, and it applies the income from these payments as a direct offset to the cost of the direct raaterials. These indir ect materials normally makeup o0\%s of the overhead cost for Procedure 1. Determine what the maxdmum new cost (net of recyeling revenued) of these Indirect materials could be for procedure 1 if this CSR, initiative were to thable the company to meet its target oross profit gercentage without changithe any other costs. Maximum new cost of P1 overhead materials: 5