Buger Research (BR) is a marketing research firm that organizes focus groups for consumer-product companies. Each focus group has eight individuals who are paid $50 per session to provide comments on new products. These focus groups meet in hotels and are led by a trained, independent marketing specialist hired by BR. Each specialist is paid a fixed retainer to conduct a minimum number of sessions and a per session fee of $2,000. A BR staff member attends each session to ensure that all the logistical aspects run smoothly. Requirements Classify each of the following cost items as: a. Direct or indirect (D or I) costs with respect to each individual focus group. b. Variable or fixed (V or F) costs with respect to how the total costs of BR change as the total number of focus groups conducted changes. (If in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the total number of groups conducted.) Classify each of the following cost items as a. direct or indirect costs and b. variable or fixed costs as explained above. Start with the first four items. (a) (b) Cost Item D or l V or F A. Payment to individuals in each focus group to provide comments on new products. B. Annual subscription of BR to Consumer Reports magazine. D V F C. Phone calls made by BR staff member to confirm individuals will attend a focus group session (records of individual calls are not kept). D. Retainer paid to focus group leader to conduct 20 focus groups per year on new medical products. V F