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Verizon Communications Inc. provides telecommunications services in April 2034. The company incurs the following operating costs: Cost Category Amount ($) Network Maintenance 25,000,000 Customer Service

Verizon Communications Inc. provides telecommunications services in April 2034. The company incurs the following operating costs:

Cost Category

Amount ($)

Network Maintenance

25,000,000

Customer Service

18,000,000

Marketing Expenses

12,000,000

Required:

  • Classify each cost as fixed, variable, or semi-variable.
  • Analyze the cost behavior of operating costs in telecommunications services.
  • Determine the total cost assuming 20 million customers served.

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