The executive educaton (EE) unt at the Business School of Central State University offers both opan-enrollment (anyone can sign un, and custom designed for a specific client) executive education programs, CSU has just received an inquiry from a prospective client about its prices for leadership serinars. The prospective dierl wants bids for three alternative activity levels: (1) une seminar with 20 particiganis, 2) four minars with 20 participants each 180 articipants lial), Dr (3) eighi serninars with 140 participants in talal. Es cast analyst has provided the following differential cost estimates: $ 590 120 Setup costs for the entire ob Materiale costs per partiupan brochures, handouts, coffee, lunch, etc.) Differential direciabor costs: One seminer 5 1.100 In addition to the preceding differerilial custs, EE allocales lixed costs la juus on a direct-labor-cool basis al arale of 80 percent of direct labor cosis excluding selup costs). For example, if direct labor costs are S100, EE would also charge the job 380 for fixed costs. EE charges clients forts costs plus 20 percent. For the purpose of charging customers, costs equal the setup costs plus materials costs plus differential labor costs plus allocated fixed costs. EE has enough exc888 capacty to handle this job with ease. Required: a. Assumn EE's bid equals the total cost, including fed casts allocated to the job, plus the 20 ocent markup an cost. What should EE bid for each of the three levels of activity? One Saminar Four Seminars Seminars Number of participants Tatal costs Bid b. Campute the differential cost (inclucing setup costs) and the contribution to profit for each of the three levels of activity. Note that fixed costs are not differential costs. Seminar Seminars Eight Seminars Differential costs: Echip coats Materials cost Differential labor costs Allocated fixed costs Total differential custo Differential bid Contribution to ancit s c. Assume the prospective client gives three options. It is willing to accept either of EE's bids for the one-seminar or four-seminar activity levels, but the prospective client will pay only 90 percent of the bid price for the eight-seminar package. EE's director responds, "We can't make money in this business by shaving our bids! Let's take the four-seminar option because we make the most profit on it." C-1. What would be the contribution to profit for each of the three options? One Seminar Four Seminars Eight Seminars Bid Incremental costs: Setup costs Material cost Differential labor costs Total incremental costs Contribution to profit $ 0 $ 0 $ 0 C-2. Do you agree with the EE's director? O Disagree Agree