Data table The percentage of time spent by professional staff on various activities follows: Making calculations and preparing drawings for clients 79% Checking calculations and drawings 3 Correcting errors found in drawings (not billed to clients) 6 Making changes in response to client requests (billed to clients) 5 Correcting own errors regarding building codes (not billed to clients) Requirement 1. How much of the total costs in 2017 are value-added, non-value-added, or in the gray area between? Explain your answers briefly. What actions can Charlton take to reduce its costs? Begin by calculating the total labor costs, then calculate the total costs. (If a box is not used in the table, leave the box empty; do not enter a zero. Round your answers to the nearest whole dollar.) Total professional labor costs Part 2 Administrative and support costs Travel Total \begin{tabular}{|r|r|r|r|} \hline 144,480 & 5,160 & 22,360 & 172,000 \\ \hline 18,000 & & & 18,000 \\ \hline$498,480 & $17,160 & $74,360 & $590,000 \\ \hline \end{tabular} Charlton 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 Charlton's operating income for 2017. Charlton could eliminate all errors so that it does not need to spend any time correcting errors. Assume Charlton could use the time saved to increase revenues proportionately. Assume travel costs will remain at $18,000. Calculate Charlton's operating income for 2017. ABOVE IS AN EXAMPLE USE|THESE NUMBERS Associates prepares architectural drawings to conform to local structural-safety codes. Data table Its income statement for 2017 is as follows: Revenues $757,350 Salaries of professional staff (8,100 hours $49 per hour) Travel 396,900 Administrative and support costs 19,000 Total costs 166,698 Operating income $174,752 Data table The percentage of time spent by professional staff on various activities follows: Making calculations and preparing drawings for clients 73% Checking calculations and drawings 5 Correcting errors found in drawings (not billed to clients) 6 Making changes in response to client requests (billed to clients) 7 Correcting own errors regarding building codes (not billed to clients) 9 100 Total %