CVP Analysis Using Published Financial Statements Condensed data in millions of dollars from Microsofts 2019 and 2018 income statements follow:

	2019	2018
Revenues	$176,180	$154,504
Total cost of revenues and operating expenses	116,038	105,423
Operating income	$60,142	$49,081

Required a. Develop a cost-estimation equation for Microsofts annual cost of revenues and operating expenses using revenues as the activity. Note: Round fixed cost amount to the nearest whole million dollar. Note: Round the variable cost ratio to two decimal places (for example, round 0.6555 to 0.66) in your answer below and in all calculations. Total cost (in millions) = $Answer + $Answer X where X is revenue in millions of dollars. b. Determine Microsofts annual break-even point. Note: Round amount to the nearest million dollar. $Answer million c. Predict operating profit for 2020, assuming 2020 sales of $210,000 million. Note: Round amount to the nearest million dollar. $Answer million

PreviousSave AnswersNext