Question: Segment Contribution Margin Analysis Amazon.com, Inc. (AMZN) organizes its operations inte three segments: North America, Internationai, and Amazon Web Services (AWS). The North America and

Segment Contribution Margin Analysis Amazon.com, Inc. (AMZN) organizes its operations inte three segments: North America, Internationai, and Amazon Web Services (AWS). The North America and international segments primarily report amounts earned from online consumer retali sales. The AWS segment offers a broad set of technology services, including computing, storage, database, analytics, and other cloud-based services. For a recent year, Amazon reported the following segment results (in millions): Assume the following percenteges of total operating expenses for each segment are variable: a. Prepare a variable costing income statement for Amazon, com by segment. Round all amounts to the nearest mililom. Amazon.com, Inc. Variable Costing Income Statement (in millions) Amazon.com, Inc. Variable Costing Income statement (in millions) b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. C. Based on your answers to (a) and (b), interpret the segment pertormance. The North America segments contribution margin ratio is slighty than inteinabionais conthbution margin rats, in contrat, Aws has a contribution margin ratio l than twice that of the North America and Internaconar segments. Thes difenences malect the undefiying operations of each segment. The North America and International scoments are based pelmarily upon cansumer resal saies, which is
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