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Google is looking to optimize its server farm operations to reduce costs. The fixed costs for maintaining the server farms are $50,000,000 per year, and
Google is looking to optimize its server farm operations to reduce costs. The fixed costs for maintaining the server farms are $50,000,000 per year, and the variable costs are $0.02 per search query. Google handles approximately 3,000,000,000 search queries per day. Additionally, the company is considering investing $10,000,000 in new energy-efficient servers, which could reduce variable costs to $0.015 per query.
Requirements:
- Calculate the current total annual costs for maintaining the server farms.
- Determine the new total annual costs if the investment in energy-efficient servers is made.
- Calculate the potential annual savings from the investment.
- Discuss the impact of these cost savings on Google's overall profitability.
- Recommend additional strategies for cost control in server operations.
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