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1 . Given the following information, determine the amount of expenses listed below that would be allocated to the prescription department in determining the cost

1. Given the following information, determine the amount of expenses listed below that would be allocated to the prescription department in determining the cost of dispensing a prescription.
Sales: $4,000,000
RX Sales: $3,500,000
Other Sales: $500,000
Pharmacy Area: 3,000 sq. ft.
RX Dept. Area: 1,000 sq. ft.
a. Rent: $36,000
b. Advertising: $20,000
c. Insurance: $20,000
d. Utilities: $15,000
e. Continuing Education: $1,000
2. In a third party analysis, the differential revenue is $2.50. The variable cost associated with the added prescriptions (10,000) is $20,000. What would be the contribution margin and should the third party program be accepted?
3. List 5 factors that influence whether a third party prescription program will be accepted or not.
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