Question: Cost Behavior Analysis at Microsoft Values: Fixed Costs: $3,000,000 Variable Costs per Unit: $25 Sales Revenue: $10,000,000 Requirements: Prepare a variable costing income statement for

Cost Behavior Analysis at Microsoft

Values:

  • Fixed Costs: $3,000,000
  • Variable Costs per Unit: $25
  • Sales Revenue: $10,000,000

Requirements:

  1. Prepare a variable costing income statement for Microsoft's software division.
  2. Calculate the contribution margin ratio for Microsoft.

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