uicksaw Inc. is a production company that is in the process of testing a strategic initiative aimed at increasing gross profit. The companys current sales revenue is $2,400,000. Currently, the companys gross profit is 35% of sales, but the companys target gross profit percentage is 40%. The companys current monthly cost of production is $1,560,000. Of this cost, 40% is for labor, 20% is for materials, and 40% is for overhead. The strategic initiative being tested at Quicksaw is a redesign of its production process that splits the process into two 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