Walmart is analyzing the costs of operating a new distribution center. The fixed costs are $20,000,000 per year, and the variable costs are $0.10 per unit handled. Walmart expects to handle 200,000,000 units in the first year. Additionally, logistics costs are estimated to be $5,000,000.

Requirements:

• Calculate the total operating costs for the first year, including logistics.
• Determine the cost per unit handled.
• Analyze the impact of handling an additional 50,000,000 units on total and per-unit costs.
• Discuss the importance of managing logistics costs in distribution center operations.
• Recommend strategies for optimizing distribution efficiency.