Cost Behavior Analysis at Microsoft

Requirements:

1. Classify costs into fixed and variable categories for Microsoft's software development division.

Cost Element	Amount ($)
Fixed Costs	20,000,000
Variable Costs	1,200,000 per quarter

2. Calculate the contribution margin and contribution margin ratio for different software products.
3. Determine the breakeven point in units and dollars based on different pricing strategies ($50, $100, and $150 per software license).
4. Recommend pricing and cost control strategies to maximize profitability during different fiscal quarters.