Retail Store Operations Cost Management

Data:

• Monthly Fixed Costs: $5,000,000
• Variable Costs per Product: $5
• Products Sold: 1,000,000
• Logistics Costs per Product: $1.50

Requirements:

1. Calculate the total monthly costs, including logistics costs.
2. Determine the cost per product.
3. Analyze the impact of selling 200,000 additional products on total and per-product costs.
4. Discuss the importance of managing logistics costs.
5. Recommend strategies for optimizing retail store operations.
6. Evaluate the potential benefits of implementing automated inventory systems.
7. Assess the impact of cost control measures on the company's customer service and operational efficiency.