Please help with requirement 3 Chanaka Associates prepares architectural drawinas...

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Accounting

Please help with requirement 3 image
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Chanaka Associates prepares architectural drawinas to conform to local structural-safety codes. (Click the icon to view the ircome statement.) Click the icon to view the percentage of time spent on activities.) Assume administrative and support costs vary with professional-labor costs. Consider each requirement independently. Read the reguirements- Requirement 2 . What are the consequences of misclassfying a non-value-added cost as a value-added cost? When in doubt, would you classify a cost as a vatue-added or non-vatue-added cost Explain briefly. The consequences of misclassifying a non-value-added cost as a value-added cost ace the managers: (Select two that apply) A. Might try to reduce any costs that supports activities the customer does not value. B. Might reduce costs that provide value or utity (usefulness) customer experiences believing these experiences are not important to the customer. 'C. May hesitate to reduce these costs thinking that if they eliminate the cost it would reduce the value of customers experience from using the product or service. D. Might not reduce a cost that supports activities a customer does not value. When in doubt, would you dassify a cost as a value-added or non-value-added cost? Explain briety. When in doubt, a manager often classifies costs as a because it Requirement 3. Suppose Chanaka could eliminate all errors so that it did not need to spend any tme makrg corrections and, as a result, could proportionately reduce protessionu-tabor costs Calculate Chanaki's operating income for 2017. (Round your answers to the neorest whole dollar.) Data table Data table The percentage of time spent by professional staff on various activites follows: Making caleulations and preparing drawings for clients Checking calculations and drawings Correcting errors found in drawings (not billed to clients) Making changes in respense to client requests (billed to cllents) Correcting own errors regarding building codes (not billed to elients) Total

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