How much operating income would GR make if revenue grew at the same rate in fiscal year 2004 as it did in 2003 and each of the following costs remained at their 2003 levels:

- COGS

- SG&A expenses

- R&D expenses

- Depreciation and amortization

Statement (in $ millions)	2003	2002
Revenue
Products	3400	3020
Services	180	140
Total Revenue	3580	3160
COGS
Products	260	270
Services	95	85
Total Cost of Revenue	355	355
Gross Profit	3225	2805
SG&A	1260	1020
R&D	660	610
Depreciation/Amortization	270	315
Operating Income	(424)	(400)
Gain (loss) on sale of assets	16	7
Interest income (expense)	36	12
Pretax Income	(372)	(381)
Provision for income taxes	207	229
Net Income	(579)	(610)

Answer rating: 100% (QA)

To calculate the operating income for GR Growth Rate in fiscal year 2004 we need to first determine the growth rate for each of the mentioned costs COGS SGA expenses RD expenses Depreciation and Amort... View the full answer