1. Amazon is analyzing the costs of launching a new delivery service. The fixed costs are estimated at $10,000,000, with variable costs projected at $2 per delivery. Amazon plans to handle 5,000,000 deliveries in the first year. Additionally, customer service costs are expected to be $1,000,000.

Requirements:

• Calculate the total operating costs for the first year, including customer service.
• Determine the cost per delivery.
• Analyze the impact of handling an additional 1,000,000 deliveries on total and per-delivery costs.
• Discuss the importance of managing customer service costs.
• Recommend strategies for optimizing delivery service efficiency.