Colbert Associates prepares architectural drawings to conform to local structural-safety codes. (Click the icon to view the income statement.) (Click the icon to view the percentage of time spent on activities.) Requirement 1. How much of the total costs in 2020 are value-added, non-value-added, or in the gray area between? Explain your answers briefly. What actions can Colbert take to reduce its costs? Begin by calculating the total labor costs, then calculate the total costs. (If an input field is not used in the table, leave the input field empty; do not enter a zero. Round your answers to the nearest whole dollar.) Data table Data table The percentage of time spent by professional staff on various activities follows: Making calculations and preparing drawings for clients Checking calculations and drawings Correcting errors found in drawings (not billed to clients) 76% Making changes in response to client requests (billed to clients) Correcting own errors regarding building codes (not billed to clients) Total 100%9 Requirements 1. How much of the total costs in 2020 are value-added, non-value-added, or in the gray area between? Explain your answers briefly. What actions can Colbert take to reduce its costs? 2. What are the consequences of misclassifying a non-value-added cost as a value-added cost? When in doubt, would you classify a cost as a value-added or non-value-added cost? Explain briefly. 3. Suppose Colbert could eliminate all errors so that it did not need to spend any time making corrections and, as a result, could proportionately reduce professional-labor costs. Calculate Colbert's operating income for 2020. 4. Now suppose Colbert could take on as much business as it could complete, but it could not add more professional staff. Assume Colbert could eliminate all errors so that it does not need to spend any time correcting errors. Assume Colbert could use the time saved to increase revenues proportionately. Assume travel costs will remain at $16,000. Calculate Colbert's operating income for 2020