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Apple Inc. operates retail stores globally. For July 2026, the company incurs the following operating costs across its retail network: Store Rent and Utilities: $20
Apple Inc. operates retail stores globally. For July 2026, the company incurs the following operating costs across its retail network:
- Store Rent and Utilities: $20 million
- Employee Salaries and Benefits: $30 million
- Product Demonstration Costs: $5 million
- Customer Support Services: $10 million
- Security and Maintenance: $8 million
Required:
- Calculate the total operating costs for Apple Inc.'s retail segment.
- Determine the cost per store assuming 500 stores globally.
- Analyze the fixed and variable components of operating costs.
- Discuss the cost behavior of operating costs in the retail industry.
- Recommend strategies for Apple Inc. to manage operating costs effectively.
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