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Amazon Inc. disclosed the following expenses: Inventory purchases: $20,000,000 Distribution center lease: $6,700,000 Customer service wages: $3,300,000 Internet advertising: $9,200,000 Insurance for delivery vehicles: $1,400,000

Amazon Inc. disclosed the following expenses:

  • Inventory purchases: $20,000,000
  • Distribution center lease: $6,700,000
  • Customer service wages: $3,300,000
  • Internet advertising: $9,200,000
  • Insurance for delivery vehicles: $1,400,000
  • Management bonuses: $2,800,000
  • Office rent: $5,500,000
  • Equipment maintenance: $1,000,000

Requirements:

  • Calculate the total distribution expenses.
  • Identify the amount allocated to administrative expenses.
  • Determine the total operating expenses.

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