The young founders of the company have become increasingly concerned with the economics of the business-particularly since many competitors have sprung up recently in the local area. To help understand the company's cost structure, an activity-based costing system has been designed. Three major activities are carried out in the company: animation concept, animation production, and contract administration. The animation concept activity is carried out at the contract proposal stage when the company bids on 8 to be shown to the prospective client. Once a project is accepted by the client, the animation goes into production and contract administration begins. Almost all of the work involved in animation production is done by the technical staff, whereas the polnts eBook Minutes of completed animation These activity rates include all of the company's costs, except for its organization-sustaining costs and idle capacity costs. There are no direct labor or direct materials costs. 2 in an unusually low ratio of accepted contracts to bids. Furthermore, the animation sequences tend to be much shorter for local animation, this means that the revenues from these short projects tend to be below average. Data concerning activity in the local commercial market appear below Homework #6 Saved Help Save & Exit Submit Local Commercials Activity leasure Number of Minutes of completed animation Number of contracts The total sales from the 5 contracts for local commercials was $310,000. Required: 1. Calculate the cost of serving the local commercial market. 2. Calculate the margin earned serving the local commercial market. (Remember, this company has no direct materials or direct labor costs.) points eBook References Complete this question by entering your answers in the tabs below. Required Required 2 Calculate the margin earned serving the local commercial market. (Remember, this company has no direct materials or direct labor costs.) Analysis Costs