Oracle Corporation provides software services using operating costing. In April 2032, the company incurs the following operating costs:

• Development Center Rent: $35 million
• Software Development Labor: $55 million
• Research Materials: $20 million
• User Support Costs: $15 million
• Administration Overhead: $22 million

Required:

• Classify each cost as fixed, variable, or semi-variable.
• Analyze the cost behavior of operating costs in software development.
• Determine the cost per software license sold assuming 10 million licenses.
• Discuss strategies to manage variable costs in operating costing.
• Prepare an operating costing statement for Oracle Corporation.