(000s) 2017 2016 Revenue $17,539,070 $13,246,004 Cost of revenues and operating expenses (16,281,051) (13,098,858) Operating income $1,258,019 $147,146 =========================================== a) Develop a cost-estimation equation for Netflixs annual cost of revenues and operating expenses b) Determine Netflixs annual break-even point.

c) Predict operating profit for 2018, assuming 2018 sales of $15,794,341 d) Using www.sec.gov, look up Netflixs 2018 Operating income reported in the 10K. e) Is the cost-estimation equation created in a) a useful framework for predicting Netflixs operating income?