Walmart Inc. operates retail stores globally. In May 2030, the company incurs the following operating costs related to its store operations:

• Store Rent: $20 million
• Merchandise Purchases: $100 million
• Staff Salaries: $30 million
• Utilities: $8 million
• Advertising: $5 million
• Administrative Expenses: $12 million

Required:

• Allocate operating costs to each department using the direct allocation method.
• Determine the cost per customer served assuming 50 million customers served.
• Analyze the cost structure of operating costing in retail operations.
• Discuss strategies to optimize operating costs at Walmart Inc.
• Prepare an operating costing statement for Walmart Inc.