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Amazon.com, Inc. (AMZN) organizes its operations into three segments: North America, International, and Amazon Web Services (AWS). The North America and International segments primarily
Amazon.com, Inc. (AMZN) organizes its operations into three segments: North America, International, and Amazon Web Services (AWS). The North America and International segments primarily report amounts earned from online consumer retail sales. The AWS segment offers a broad set of technology services, including computing, storage, database, analytics, and other cloud-based services. For a recent year, Amazon reported the following segment results (in millions): Sales Segment North America $236,282 Segment International Segment AWS Total $104,412 $45,370 $386,064 Operating expenses (227,631) Operating income 58,651 (103,695) 5717 (31,839) (363,165) $13,531 $22,899 Assume the following percentages of total operating expenses for each segment are variable: Percentage of Variable Segment Operating Expenses North American 85% International AWS 80% 75% a. Prepare a vanable costing encome statement for Amazon.com by segment. Round all amounts to the nearest million. Amazon.com, Inc. Variable Costing Income Statement (in millions) North Line Item Description America tational AWC
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