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Evaluate the cost structure of Amazon's fulfillment centers using ABC (Activity-Based Costing) methodology. Cost Components Fixed Costs ($) per Year Variable Costs per Order ($)
Evaluate the cost structure of Amazon's fulfillment centers using ABC (Activity-Based Costing) methodology.
Cost Components | Fixed Costs ($) per Year | Variable Costs per Order ($) | Order Volume (orders per year) |
Fulfillment Centers | 50,000,000 | 5 | 10,000,000 |
Requirements:
Calculate the total annual cost using ABC.
Determine the cost per order under ABC.
Analyze the impact of different order volumes on total costs.
Recommend improvements based on ABC analysis.
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