1. CVS Health and Walgreens Boots Alliance allocate their healthcare operating costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	CVS Health Total Cost ($)	Cost Driver	Cost Driver Quantity	Walgreens Total Cost ($)
Pharmacy Services	$4,500,000	Prescription volume	1,000,000 prescriptions	$4,000,000
Health Clinics	$3,000,000	Number of visits	100,000 visits	$2,600,000
Over-the-counter Sales	$2,000,000	Sales revenue	$50,000,000	$1,800,000
Total	$9,500,000			$8,400,000

• Calculate the healthcare operating cost per prescription, per clinic visit, and per dollar of over-the-counter sales for CVS Health and Walgreens Boots Alliance.
• Evaluate how differences in prescription volume impact the operational efficiency and profitability of CVS Health and Walgreens Boots Alliance.
• Discuss the strategic implications of health clinic costs on expanding healthcare services for both companies.