1. Amazon.com Inc. and Walmart Inc. allocate their retail operating costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	Amazon Total Cost ($)	Cost Driver	Cost Driver Quantity	Walmart Total Cost ($)
Fulfillment	$8,000,000	Number of orders	2,000,000 orders	$7,200,000
Logistics	$5,500,000	Miles shipped	10,000,000 miles	$5,000,000
Customer Service	$3,200,000	Number of inquiries	1,000,000 inquiries	$2,800,000
Total	$16,700,000			$15,000,000

• Calculate the retail operating cost per order, per mile shipped, and per customer inquiry for Amazon and Walmart using activity-based costing.
• Analyze how differences in logistics costs impact supply chain efficiency and customer delivery experience for Amazon and Walmart.
• Discuss the strategic implications of customer service costs on customer satisfaction and loyalty strategies for both companies.