Amazon.com operates e-commerce services using operating costing. In May 2031, the company incurs the following operating costs:

• Warehouse Rent: $25 million
• Fulfillment Labor: $35 million
• Packaging Materials: $10 million
• Shipping Costs: $20 million
• Customer Service: $8 million
• Selling Expenses: $15 million
• Distribution Expenses: $12 million

Required:

• Allocate operating costs to warehousing, fulfillment, and shipping operations.
• Determine the cost per customer served assuming 50 million customers processed.
• Analyze the cost structure and profitability of Amazon.com's e-commerce operations.
• Discuss the role of cost allocation in managing operating costs.
• Prepare an operating costing statement for Amazon.com, Inc.