Cost Behavior Analysis at Alphabet Inc.

Requirements:

1. Classify costs into fixed and variable categories for Alphabet's research and development division.

Cost Element	Amount ($)
Fixed Costs	22,000,000
Variable Costs	1,000,000 per quarter

2. Calculate the contribution margin and contribution margin ratio for different service lines.
3. Determine the breakeven point in units and dollars based on different pricing strategies ($10, $15, and $20 per service unit).
4. Recommend pricing and cost control strategies to maximize profitability during different fiscal quarters.