14-17. VALUE-ADDED, NON-VALUE-ADDED COSTS. The Magill Repair Shop repairs and services machine tools. A summary of its costs (by activity) for 2020 is as follows: Required 1. Classify each cost as value-added, non-value-added, or in the gray area between. 2. For any cost classified in the gray area, assume 60% is value-added and 40% is non-value-added. How much of the total of all seven costs is value-added and how much is non-value-added? 3. Magill is considering the following changes: (a) introducing quality-improvement programs whose net effect will be to reduce rework and expediting costs by 40% and materials and labor costs for servicing machine tools by 5%, (b) working with suppliers to reduce materials-procurement and inspection costs by 20% and materialshandling costs by 30%, and (c) increasing preventive-maintenance costs by 70% to reduce breakdown-maintenance costs by 50%. Calculate the effect of programs (a), (b), and (c) on value-added costs, non-value-added costs, and total costs. Comment briefly