Actuvity Cost Pools and Activity Measures with their respective rates are as follows:

Animation Concept/Number of Proposals/$6,000 per proposal

Animation Production/Minutes of Completed Animation/$8,200 per minute

Contract Administration/Number of Contracts/$6,700 per contract

Data concerning the actuvity in the commercial market are as follows (Actuvity Measure/Local Commercials)

Number of Proposals/26

Minutes of Completed Animation/13

Number of Contracts/11

The activity rates include all of the company's costs --- there are no direct labor or direct material

costs.

total sales from the 11 contacts was $220,000

1) Calculate the cost of serving the local commercial market

2) Calculate the margin earned serving the local commercial market (recall this company has no direct materials and no direct labor costs)