Amazon.com operates warehouses globally. In May 2030, the company incurs the following operating costs related to its e-commerce operations:

• 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

Labor costs are split between direct ($25 million) and indirect ($10 million).

Required:

• Calculate the total operating costs for Amazon.com.
• Determine the cost per order fulfilled assuming 10 million orders processed.
• Allocate selling and distribution expenses to the e-commerce operations.
• Analyze the cost structure of operating costing in online retail.
• Prepare an operating costing statement for Amazon.com.