Question
Amazon Inc. has three operating segments: E-commerce, AWS, and Advertising. The following financial data is available for the segments: Segment Sales Revenue Variable Costs Fixed
Amazon Inc. has three operating segments: E-commerce, AWS, and Advertising. The following financial data is available for the segments:
Segment | Sales Revenue | Variable Costs | Fixed Costs |
E-commerce | $50,000,000 | $30,000,000 | $10,000,000 |
AWS | $40,000,000 | $20,000,000 | $5,000,000 |
Advertising | $20,000,000 | $10,000,000 | $3,000,000 |
Requirements:
- Prepare the Contribution Margin Income Statement for each segment.
- Calculate the Segment Margin for each division.
- Determine the overall profitability of Amazon Inc.
- Analyze which segment contributes the most to Amazon's profitability.
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Managerial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
4th Canadian edition
1118856996, 978-1118856994
