Refer to this income statement of Salesforce

https://finance.yahoo.com/quote/CRM/financials?p=CRM

1. Use the financial statements of above company and identify where are the various cost shown and the under which overhead like Fixed, Variable, Semi Variable cost. Give reasons in support of your answer.
2. Use the marginal cost approach, to find the sale of your company if the profit of your company grows by 10% from the last year. Suggest three models separately and the reason why you support the model. How are you going to achieve it in the coming year? Give detailed calculation for the three alternatives suggested.

Guidelines for this application assignment

a. Present the latest income statement in as much detail as possible (details will be available from the notes/ schedules to the P&L a/c in the financial statements)

b. Explain with reasons the classification of costs.

c. For the task of increasing profits, you may come up with suggestions. However, you must not just mention that costs will be lower or revenue will be higher by a particular %, you also have to explain how you propose to achieve such reduction of costs or increase in revenue.

d. The calculations should reflect the alternative models that have been explained by you.

Consider all workings in MS-Excel. The same should be derived.

Answer rating: 100% (QA)

Here is the analysis of Salesforces income statement and the proposed models to increase profits by 10 1 Analysis of Salesforces Income Statement Salesforces latest income statement for the fiscal yea... View the full answer