2.85 points The executive education (EE) unit at the Business School of Central State University offers both open-enrollment (anyone can sign up) and custom (designed for a specific client) executive education programs. CSU has just received an inquiry from a prospective client about its prices for leadership seminars. The prospective client wants bids for three alternative activity levels: 1) one seninar with 20 participants, (2) four seminars with 20 participants each (80 participants total), or (3) eight seminars with 140 participants in total. EE's cost analyst has provided the following differential cost estimates; $rDD 110 Setup costs tor the entireo Malerials cwsls per perticipanl (brochures, haridouls, coffee, lunch, elc.1 Differential direct labor costs Onc seminar $1.300 6.200 .800 Fight seminars In addition to the preceding differential costs, EE allocates fixed costs to jobs on a direct-labor-cost basis, at a rate of 70 percent of direct labor costs (excluding setup costs). For example, if direct labor costs are $100, EE would also charge the job $70 tor tixed costs. EE charges clients for its costs plus 30 percent. For the purpose ot charging customers, costs equal the setup costs plus materia s costs plus cditterential labor costs plus allocated ixed costs. EE has enough excess capacity to handle this job with ease. Required: a. Assume EE's bld equals the total cost, Including fxed costs allocated to the Job, plus the 30 percent markup on cost. What should EE bd for each of the three levels of activity? One Seminar Four Seminars Seminars Number of participarils Total costs Hid b. Compute the cifferential cost (indluding setup costs) and the contribution to profit for each of the three levels of actlvity. Note that fixed costs are not ditterential costs