Question: Google operates through three main channels: Search, YouTube, and Cloud. The financial data for the year is as follows: Search: Revenue - $300,000,000, Variable Costs

  1. Google operates through three main channels: Search, YouTube, and Cloud. The financial data for the year is as follows:
    • Search: Revenue - $300,000,000, Variable Costs - $150,000,000, Fixed Costs - $100,000,000
    • YouTube: Revenue - $200,000,000, Variable Costs - $100,000,000, Fixed Costs - $80,000,000
    • Cloud: Revenue - $250,000,000, Variable Costs - $120,000,000, Fixed Costs - $90,000,000 Requirements:
    • Prepare the Income Statement for each channel.
    • Calculate the Contribution Margin Ratio for each channel.
    • Determine the Break-Even Point in dollars for each channel.
    • Evaluate the profitability and suggest strategic improvements.

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