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Facebook, Inc. operates social media platforms globally. In May 2029, the company incurs the following operating costs related to its advertising services: Marketing and Advertising:
Facebook, Inc. operates social media platforms globally. In May 2029, the company incurs the following operating costs related to its advertising services:
- Marketing and Advertising: $50 million
- Data Analytics: $30 million
- Content Moderation: $20 million
- Platform Development: $25 million
- User Support: $15 million
Required:
- Calculate the total operating costs for Facebook, Inc.
- Determine the cost per user served assuming 1 billion active users.
- Analyze the fixed and variable components of operating costs.
- Discuss the cost behavior of operating costs in the social media industry.
- Recommend cost management strategies for Facebook, Inc.
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