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Uber is assessing the costs associated with expanding its ride-sharing services to a new country. The fixed costs for the expansion are estimated at $20,000,000,

Uber is assessing the costs associated with expanding its ride-sharing services to a new country. The fixed costs for the expansion are estimated at $20,000,000, with variable costs of $5 per ride. Uber anticipates 10,000,000 rides in the first year. The company is also considering a $5,000,000 investment in local marketing, which could increase the number of rides by 20%.

Requirements:

  1. Calculate the total costs for the first year of expansion.
  2. Determine the cost per ride.
  3. Analyze the financial impact of the marketing investment.
  4. Discuss the role of cost control in international expansion.
  5. Recommend strategies for optimizing costs in new markets.

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