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Assume you are a financial analyst at Amazon.com. The company is considering outsourcing its logistics operations to a third-party provider. Evaluate the cost implications of

  1. Assume you are a financial analyst at Amazon.com. The company is considering outsourcing its logistics operations to a third-party provider. Evaluate the cost implications of this decision. Compare the costs of in-house logistics versus outsourcing. Consider both fixed and variable costs. Recommend the most cost-effective option for Amazon, supporting your recommendation with relevant calculations and financial analysis.

Values:

    • In-house Logistics Cost: $1,000,000 per year
    • Outsourcing Cost: $800,000 per year

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