XYZ Co. introduced a new product to the market, product (B), in addition to the current product, product (A). Given the following information: DM cost/unit DL cost/unit No. of units produced DL hrs/unit Product (A) 168 12 180,000 1.2 Product (B) 231 24 22,500 2.4 -The company is currently using DL hours as an allocation base for the co. overhead cost - Total budgeted overhead cost $7,177,500 - The company is using the cost plus pricing model: 30% of the total cost - The company has the following activities to produce products A & B. Activity Budget $ Activity Size Needs of A Machine Setup 972,000 1350 Setup 600 Purchase Order 378.000 1800 Orders 1050 Quality Test 202,500 22,500 Tests 13500 Machine Related 5,625,000 75,000 Hours Total 41,700 Needs of B 750 750 9000 33300 7,177,500 Required: The Company noticed that in spite of the increase in demand on product B, there is a decrease in the co's overall profit. Explain why