Implement an ABC system at Amazon to allocate costs across different service lines.

Cost Drivers	Allocation Basis	Annual Cost Allocation ($)
Delivery Hours	Number of hours	200,000,000
Fulfillment Orders	Number of orders	150,000,000
Storage Space	Amount of space used	100,000,000

Requirements:

Identify cost drivers such as delivery hours, fulfillment orders, and storage space.

Allocate costs to service lines like Prime delivery, regular shipping, and warehousing based on complexity.

Analyze profitability using ABC allocations and suggest optimization strategies.

Prepare a report showing cost allocations and profitability analysis.

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Analyze the financial viability of expanding Starbucks' international operations using NPV, IRR, and payback period methods.

Investment Components	Initial Investment ($)	Annual Cash Flows ($)	Project Life (years)	Discount Rate (%)
International Expansion	150,000,000	40,000,000	5	10%

Requirements:

Calculate NPV and IRR based on projected cash flows and discount rate.

Determine the payback period for the investment.

Conduct a sensitivity analysis to assess the impact of changes in expansion costs.

Provide recommendations on whether to proceed with the international expansion.