P15-34. CVP Analysis Using Published Financial Statements

Condensed data in millions of dollars from Apples 2014 and 2015 income statements follow:

REQUIRED

1. Develop a cost-estimation equation for Apples annual cost of revenues and operating expenses.

2. Determine Apples annual break-even point.

3. Predict operating prot for 2016, assuming 2016 sales of $284,000 million.

4. Identify the assumptions required to use the equations and amounts computed above.

Could you please give a good explanation for each required. I already have a good idea of what they are just need some better understanding. Thank you!