Cost Behavior Analysis at Google

Requirements:

• Analyze the cost behavior patterns for Google's cloud computing services, categorizing costs as fixed, variable, and semi-variable.
• Calculate the contribution margin ratio for Google's cloud computing division, given total revenue of $10 million and variable costs of $6 million.
• Prepare a cost-volume-profit (CVP) graph illustrating the relationship between sales volume and profit for Google's cloud computing services.
• Recommend pricing strategies to optimize profitability based on cost behavior analysis for Google's cloud computing division.