Google LLC uses mixed costing for its data center operations. In August 2038, the company incurs the following costs:

• Fixed Costs: $40,000,000
• Variable Costs: $20,000,000

Requirements:

• Classify each cost as fixed or variable.
• Perform a cost-volume-profit analysis.
• Calculate the contribution margin and breakeven point.
• Analyze the profitability of data center operations at different levels of activity.
• Recommend strategies to improve profitability and manage costs.