1. FedEx Corporation and DHL Express allocate their service industry costs using activity-based costing. The following table summarizes the costs and cost drivers:

Activity	FedEx Total Cost ($)	Cost Driver	Cost Driver Quantity	DHL Total Cost ($)
Package Delivery	$6,500,000	Number of packages	1,500,000 packages	$6,000,000
Logistics Support	$4,200,000	Miles driven	5,000,000 miles	$3,800,000
Customer Service	$2,800,000	Number of inquiries	800,000 inquiries	$2,400,000
Total	$13,500,000			$12,200,000

• Calculate the service industry cost per package, per mile driven, and per customer inquiry for FedEx Corporation and DHL Express using activity-based costing.
• Analyze how differences in logistics support costs impact operational efficiency and delivery reliability for FedEx Corporation and DHL Express.
• Discuss the strategic implications of customer service costs on customer satisfaction and retention strategies for both companies.