Microsoft is evaluating the costs of developing a new software application. Fixed development costs are $100 million, variable costs per license sold are $20, and Microsoft expects to sell 5 million licenses. Additionally, customer support costs are estimated at $30 million.

Requirements:

• Calculate the total development and customer support costs.
• Determine the cost per license sold.
• Analyze the impact of selling an additional 1 million licenses.
• Discuss the importance of managing customer support costs.
• Recommend strategies for optimizing software development and support.