1. CVS Health Corporation and Rite Aid Corporation allocate their healthcare operating costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	CVS Health Total Cost ($)	Cost Driver	Cost Driver Quantity	Rite Aid Total Cost ($)
Pharmacy Services	$5,800,000	Prescription volume	1,200,000 prescriptions	$5,200,000
Health Clinics	$3,500,000	Number of visits	150,000 visits	$3,000,000
Over-the-counter Sales	$2,200,000	Sales revenue	$60,000,000	$2,000,000
Total	$11,500,000			$10,200,000

• Calculate the healthcare operating cost per prescription, per clinic visit, and per dollar of over-the-counter sales for CVS Health Corporation and Rite Aid Corporation using activity-based costing.
• Evaluate how differences in health clinic costs impact patient care accessibility and healthcare outcomes for CVS Health Corporation and Rite Aid Corporation.
• Discuss the implications of over-the-counter sales costs on revenue generation and profitability strategies for both companies.