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Nike’s contract manufacturers make the vast majority of Nike’s footwear. Assume these costs are variable to Nike. Nike’s largest fixed costs are associated with its distribution system. Consider one of Nike’s three distribution and customer service facilities in the United States. List several examples of step-fixed costs and mixed costs at these centers. For each of the following activities at a distribution center, list one plausible cost driver:

Receiving activity

Unpacking incoming cases of footwear

Picking and packing case of footwear for shipment to retail accounts

Processing orders from retail accounts

Providing customer service to retail accounts

Processing order changes from retail accounts