• Amazon.com, Inc. faced $2 billion in increased logistics costs due to higher demand and supply chain challenges. The company reported the following financial data:
  • Increased Logistics Costs: $2 billion
  • Total Revenue: $386 billion
  • Operating Expenses: $362 billion
  • Net Income: $21 billion

• Requirements:
  1. Calculate Amazon’s net income after accounting for the increased logistics costs.
  2. Prepare an income statement showing the impact of increased logistics costs on operating income.
  3. Analyze Amazon’s operating profit margin before and after the increased logistics costs.
  4. Discuss the strategies Amazon could employ to mitigate future logistics cost increases.
  5. Evaluate the impact of logistics cost increases on Amazon’s overall financial performance.