Question: FedEx Corporation operates transportation services using operating costing. In September 2035, the company incurs $50,000,000 in costs allocated as follows: $30,000,000 for air transport $20,000,000

FedEx Corporation operates transportation services using operating costing. In September 2035, the company incurs $50,000,000 in costs allocated as follows:

$30,000,000 for air transport
$20,000,000 for ground transport

Required:

Allocate costs to air and ground transport.
Analyze the cost structure of FedEx's transportation services.

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