3. What is the incremental cost of adopting the direct disturbution model? Hints: If the warehouse costs increase from $20,000 to $30,000 the incremental coste is $10,000. 4. Comparing your estimate of incremental costs from (3), to the ommssion /agenyc fee being paid to VARs, does it make financial sense to replace VARs with a direct distribution mdoel ? In other words, is the incremental cost offset by the saings in agency fee payments to VARs ?provide in the health care supply chain