Question
Cost Behavior Analysis at Amazon Requirements: Classify costs into fixed and variable categories for Amazon's logistics division. Cost Element Amount ($) Fixed Costs 50,000,000 Variable
Requirements:
- Classify costs into fixed and variable categories for Amazon's logistics division.
Cost Element | Amount ($) |
Fixed Costs | 50,000,000 |
Variable Costs | 3,000,000 per quarter |
- Calculate the contribution margin and contribution margin ratio for different service lines.
- Determine the breakeven point in units and dollars based on different pricing strategies ($10, $20, and $30 per delivery).
- Recommend pricing and cost control strategies to maximize profitability during different fiscal quarters.
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy
11th Canadian edition Volume 1
1119048532, 978-1119048534
