Amazon is exploring the costs associated with launching a new delivery drone service. The development costs are $300 million, and each drone costs $10,000 to manufacture. Amazon expects to deploy 10,000 drones annually, supporting $500 million in additional delivery revenue.

Requirements:

• Present the development costs and variable manufacturing costs in a table format.
• Calculate the total investment and variable costs for manufacturing the drones.
• Determine the contribution margin per drone and total contribution margin.
• Analyze the market demand and regulatory challenges for drone delivery services.
• Discuss the strategic advantages of integrating drone technology into Amazon's logistics.
• Evaluate the financial implications of the drone service on Amazon's profitability.