Amazon.com, Inc. has three segments: North America, International, and Amazon Web Services (AWS). The following information is provided for 2023:

• North America: Sales $3,000,000, Variable Costs $1,500,000, Fixed Costs $700,000
• International: Sales $2,500,000, Variable Costs $1,200,000, Fixed Costs $600,000
• AWS: Sales $2,000,000, Variable Costs $1,000,000, Fixed Costs $400,000

Required:

1. Prepare a segmented income statement.
2. Calculate the contribution margin for each segment.
3. Analyze the profitability of each segment and suggest improvements.
4. Discuss the importance of segment reporting in financial analysis and decision-making.