ANALYZE, THINK, COMMUNICATE ATC 3-1 Business Applications Cost-volume-profit behavior at Netflix Inc. As the data on the partial income statements shown below reveal, Netflix Inc. increased its revenues by 53 percent from 2012 to 2014, while its operating income during this period increased by 705 percent. Netflix, Inc. Partial Statement of Operations (amounts in thousands) Year ended December 31, 2013 $5,504,656 $4.374,562 $3,609,282 2014 2012 Revenues Cost of revenues 607,186 472,321 69741 1 3,117,203 2,652,058 439,208 329,008 139,016 469.942 Technology and development General and administrative Operating income 378,769 80,301 15540 402648 228,347 49.992 Required a. What concept explains, at least in part, how Netflix's net income could rise by 705 percent when b. Does the concept identified in Requirement a result from fixed costs or variable costs? its revenue rose only 53 percent Analyze the data for the four expense categories presented above. Which one seems the most re- sponsible for the causing percentage increase in operating income to be so much greater than the percentage increase in revenues? Explain your answer with computations. Note: You will need to use some creative thought for this, as the material in the chapter does not show an exact demon- stration, but the concepts involved should be familiar c