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Amazon.com Inc. operates multiple fulfillment centers. For one of its centers, the monthly costs are as follows: Rent: $500,000 Utilities: $100,000 Labor: $1,000,000 Maintenance: $50,000

  • Amazon.com Inc. operates multiple fulfillment centers. For one of its centers, the monthly costs are as follows:
    • Rent: $500,000
    • Utilities: $100,000
    • Labor: $1,000,000
    • Maintenance: $50,000
    • If the fulfillment center processes 1,000,000 orders per month, calculate the average cost per order and determine the break-even point in terms of orders needed to cover the fixed costs.

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