In addition to these internal labor costs, the Production Supervisor has estimated that the European History eBook will incur these costs: I An overhead rate on all direct labor of 1.50, or 150%. a Material costs of $1.000 for each permission needed 0 Equipment costs of $800 for unique equipment needed for this project (a special oversize map scanner) 0 Subcontract labor of $500 for installation and training in the use of the oversize map scanner 0 Computer support costs of $600 0 Sales commissions of 20% of Total Direct Costs In addition to direct and indirect costs, Global Green Books targets a 25% net profit margin on each project, and budgets for a 10% contingency on labor and 20% contingency on permissions. Comment on the following aspects of the case study: a) What are the types of direct costs identied in this case? Why are they viewed as direct costs? (6 pts) b) What are some problems that might arise that could impact the budget? (3 pts) 0) Why would Global Green Books set aside contingencies? How would needed rework. if caught in the quality reviews, be accounted for in the budget? (4 pts) d) What are the main cost drivers of this project? (3 pts) e) What other information, if any, would you like to see included in the budget for this project? Why? (4 pts) Create a budget for the European History eBook project using a spreadsheet of your own design: a) What are the direct costs by major phases of work for making this European History eBook? (8 pts) b) What are the total costs for direct labor? (5 pts) 0) What is the total estimated direct cost of this European History eBook? (5 pts) d) What would the price to the customer have to be to earn the 25% net margin return mentioned above? (5 pts)