Amazon.com, Inc. (AMZN) organizes its operations into three segments: North America, International, and Amazon Web Services (AWS).

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Amazon.com, Inc. (AMZN) organizes its operations into three segments: North America, International, and Amazon Web Services (AWS). The North America and International segments primarily report amounts earned from online consumer retail 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 percentages 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 million.
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 performance.

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Financial And Managerial Accounting

ISBN: 9780357714041

16th Edition

Authors: Carl S. Warren, Jefferson P. Jones, William Tayler

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