Please answer question 2 and 3 showing all calculations/formulas. Assignments submitted without formulas/ calculations will result in a zero grade.

1. What are the primary differences between direct and indirect costs? Please give an example of each. What is the differences between fixed costs and variable costs? Please give an example of each.
2. Below is a table for three independent clinics. Fill in the missing data (a)- (f). You will have 6 answers to this question.

Financial Data on three Independent Clinics

Clinic	Revenue	Total Variable Costs	Fixed Costs	Total Costs	Profit
Homeland Clinic	$2,000	$1,400	(a)	$2,000	(b)
Washington Clinic	(c)	$1,000	(d)	$1,600	$2,400
Townsend Clinic	$4,000	(e)	$600	(f)	$400

3.

The Dietary Department of Phoenix Hospital has direct costs of $450,000. The hospitals four patient services departments utilize the following amounts of space:

Department A	1,000 square feet
Department B	2,000
Department C	3,000
Department D	4,000

Assuming that the cost driver for dietary costs is the amount of occupied space, what is the allocation of dietary costs to Department C?