Question: Apple Inc. operates retail stores using operating costing in June 2034. The company incurs the following costs for its store operations: Store Rent: $15,000,000 Store

Apple Inc. operates retail stores using operating costing in June 2034. The company incurs the following costs for its store operations:

  • Store Rent: $15,000,000
  • Store Personnel Costs: $12,000,000
  • Inventory Holding Costs: $8,000,000

Required:

  • Classify each cost as fixed, variable, or semi-variable.
  • Analyze the cost behavior of operating costs in retail operations.
  • Determine the cost per customer served assuming 15 million customers.

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