The company that runs the GOODFELLAS cinema has been in business for two years and now wants to find out how much is the cost of each of the two activities they carry out: showing movies and running a bar. The premises are rented and extend over 350 m2, of which the bar occupies a space of 50m2. Before initiating business, it was necessary to carry out some important adaptation works (remodeling the projection room, soundproofing measures, fire measures, etc.), and also new equipment and furniture was acquired. The equipment includes projection and sound equipment, air conditioning and heating systems, fridges, popcorn machine, screens, chairs, etc. Among the computer equipment there are the POS at the entrance for ticket sales and the POS for the bar. The following details are available with regard to the equipment: Item Remodeling of the premises Acquisition cost Yearly depreciation 65.000 10% Equipment - theater room 60.000 20% Equipment - bar 10.000 20% Furniture theater room 10.000 20% Furniture bar 2.000 20% POS 4.350 25% Other annual costs are as follows: The annual revenues are as follows: Item Rent Amount Item 61.200 Ticket sales Supplies Salaries 5.226 Bar sales Amount 268.264 70.280 71.069 Social security 16.347 Distributors 120.719 Details of the personnel costs are: Goods for sale in bar 17.570 Maintenance and Repairs 4.176 Employee Amount Insurance 1.068 Box office 17.150 Copyrights 7.886 Waiter 15.778 Consultancy services 2.088 Film operator 27.244 Advertising 2.784 Manager 27.244 REQUIRED: 1. Determine the direct costs of each of the two activities. Justify your choice. 2. Determine total indirect costs, and how much each activity contributes to cover them. 3. Establish criteria for the allocation of the indirect costs and determine the amount corresponding to each activity. Explain your reasons. 4. Determine the full cost and profit obtained with each activity.