Amazon uses mixed costing for its e-commerce operations. In December 2040, the company incurs the following costs:

• Fixed Costs: $200,000,000
• Variable Costs: $75,000,000

Requirements:

• Classify each cost as fixed or variable.
• Perform a cost-volume-profit analysis.
• Calculate the contribution margin and breakeven point.
• Analyze the profitability of e-commerce operations at different levels of activity.
• Recommend strategies to improve profitability and manage costs.