Question: Google is looking to optimize its server farm operations to reduce costs. The fixed costs for maintaining the server farms are $50,000,000 per year, and

Google is looking to optimize its server farm operations to reduce costs. The fixed costs for maintaining the server farms are $50,000,000 per year, and the variable costs are $0.02 per search query. Google handles approximately 3,000,000,000 search queries per day. Additionally, the company is considering investing $10,000,000 in new energy-efficient servers, which could reduce variable costs to $0.015 per query.

Requirements:

  1. Calculate the current total annual costs for maintaining the server farms.
  2. Determine the new total annual costs if the investment in energy-efficient servers is made.
  3. Calculate the potential annual savings from the investment.
  4. Discuss the impact of these cost savings on Google's overall profitability.
  5. Recommend additional strategies for cost control in server operations.

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