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Amazon operates in three segments: North America, International, and AWS. The following details are provided: North America: Revenue - $150,000,000, Variable Costs - $90,000,000, Fixed
- Amazon operates in three segments: North America, International, and AWS. The following details are provided:
- North America: Revenue - $150,000,000, Variable Costs - $90,000,000, Fixed Costs - $40,000,000
- International: Revenue - $100,000,000, Variable Costs - $60,000,000, Fixed Costs - $35,000,000
- AWS: Revenue - $200,000,000, Variable Costs - $120,000,000, Fixed Costs - $50,000,000 Requirements:
- Prepare the Income Statement for each segment.
- Calculate the Contribution Margin for each segment.
- Determine the Break-Even Point in dollars for each segment.
- Assess the overall profitability of Amazon.
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