Classify each of the following cost itemsas:

a.Direct or indirect (D or I)costs withrespect toavideo sectionof a corporation

b.Variable or fixed (V or F) costs with respect to how the total costs of the video section change as the number of videos sold changes.( if in doubt, select on the basis of whether the total costs will change substantially if there is a large change in the number of videos sold.)

You will have two answers (D or I; V orF )for each of the following items.Explain eachanswer

A.Annual retainer paid to a video distributor

B.Electricity costs of HEC store( singlebill covers entire store)

C.Costs of videos purchased for sale to customers

D.Subscriptions to video trends magazine

E.Leasing of computer software used for financial budgeting at HEC store

F.Cost popcorn provided free to all customers of HEC

G.Earthquake insurance policy for HEC store

H.Shipping costs of videos purchased by HEC