Vertical analysis Amazon.com, Inc. is the largest Internet retailer in the United States. Amazon's income statements through operating income for two recent years are as follows (in millions): Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Product sales $141,915 $118,573 59,293 Service sales 90,972 Total sales $232,887 $177,866 Cost of sales Fulfillment $139,156 34,027 13,814 28,837 4,336 $111,934 25,249 10,069 Marketing Technology and content General and administrative 22,620 3,674 Other operating expense, net 296 214 Total operating expenses $220,466 $173,760 Operating income $12,421 $4,106 Required: Required: a. Prepare a vertical analysis of the two operating income statements. Round percentages to one decimal place. Amazon.com, Inc. Operating Income Statements For the Years Ended December 31 (in millions) Year 2 Year 1 Amount Percent Amount Percent Product sales % $ % Service sales % % Total sales % % Cost of sales % $1 % Fulfillment % % Marketing % % Technology and content % % General and administrative % % Other operating expense, net % % Total operating expenses % % Operating income % % b. Use the vertical analysis to explain the decrease in income from operations. in cost of sales as a percent of The vertical analysis indicates that operating income declined between the two years. Total expenses decreased as a percent of total sales. There was a sizable decrease sales. There were also increases to technology and content, and general and administrative expenses as a percent of sales