1. Amazon.com operates multiple fulfillment centers globally. In May 2026, the company incurs the following costs related to its fulfillment operations:
   • Warehouse Rent: $10 million
   • Fulfillment Labor: $15 million
   • Packaging Materials: $5 million
   • Shipping Costs: $8 million
   • Customer Service: $3 million

Required:

• Allocate operating costs to each fulfillment center based on direct costs.
• Determine the cost per order fulfilled assuming 5 million orders processed.
• Analyze the cost structure of operating costing in e-commerce logistics.
• Discuss strategies to optimize fulfillment center costs at Amazon.com.
• Prepare an operating costing statement for Amazon.com.