Amazon.com, Inc. (AMZN) is the largest Internet retailer in the United States. Amazon€™s income statements through operating income for two recent years are as follows (in millions):

a. Prepare a vertical analysis of the two income statements. Round percentages to one decimal place.
b. Use the vertical analysis to explain the increase in operating income.

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Amazon.com, Inc. Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Revenues: Product sales. Service sales . $ 94,665 $ 79,268 41,322 27,738 $ 135.987 $ 107.006 Total revenues. Operating expenses: Cost of sales... $ (88,265) $ (71,651) Fulfillment.. (17,619) (13,410) Marketing.. Technology and content. (7,233) (5,254) (16,085) (12,540) General and administrative.. (2,432) (1,747) Other operating expense (income), net. Total operating expenses Operating income (167) $ (131,801) (171) $ (104,773) 2,233 4,186