Cost Behavior Analysis at Spotify

Requirements:

1. Classify costs into fixed and variable categories for Spotify's music streaming division.

Cost Element	Amount ($)
Fixed Costs	25,000,000
Variable Costs	1,500,000 per quarter

2. Calculate the contribution margin and contribution margin ratio for different subscription plans.
3. Determine the breakeven point in units and dollars based on different pricing strategies ($5, $10, and $15 per month).
4. Recommend pricing and cost control strategies to maximize profitability during different fiscal quarters.