Expedia provides travel services on the Internet. 2011 was an important year for Expedia as it reported positive operating income after 3 years of operating losses. In the first quarter of 2010, Expedia reported an operating loss of $3 million on sales revenue of $49 million. In the first quarter of 2011, sales revenue had more than doubled to $101 million, and Expedia had operating income of $14 million. Assume that fixed costs were the same in 2011 as in 2010. Requirements Compute the operating expenses for Expedia in the first quarter of 2010 and in the first quarter of 2011. 1. 2. Determine the cost function for Expedia, that is, the total fixed cost and the variable cost as a percentage of sales revenue. 3. Explain how Expedia's operating income could increase by $17 million with an increase in sales of $52 million, while it had an operating loss of $3 million on its $49 million of sales in the first quarter of 2010. ... Requirement 1. Compute the operating expenses for Expedia in the first quarter of 2010 and in the first quarter of 2011. Less: Operating expenses 2010 million million million 2011 million million million Requirement 2. Determine the cost function for Expedia, that is, the total fixed cost and the variable cost as a percentage of sales revenue. (Enter the total fixed cost in millions rounded to the nearest million, "X.X". Enter variable cost in decimal form to two decimal places, .XX.) = + Requirement 3. Explain how Expedia's operating income could increase by $17 million with an increase in sales of $52 million, while it had an operating loss of $3 million on its $49 million of sales in the first quarter of 2010. Because in 2011 wiped out the the entire , the increased sales in 2011 went directly to The increased