Chapter 22 BTN 22-1

1. Identify several of the variable, mixed and fixed costs that the Blackberry service department is likely to incur in carrying out its services.

2. Assume that Blackberry services revenue are expected to grow by 25% in the next year. How do you expect the costs indentified in part 1 to change, if at all?

3. Based on your answer to part 2, can RIM use the contribution margin ratio to predict how income will change in response to increases in Blackberry service revenues?