IBM Corporation provides IT services using mixed costing. In April 2034, the company incurs the following costs related to its production and distribution:

• Direct Materials: $700 million
• Direct Labor: $400 million
• Factory Overhead: $250 million
• Selling Expenses: $120 million
• Distribution Expenses: $90 million
• Indirect Expenses: $150 million

Required:

• Classify each cost as direct, indirect, fixed, variable, or semi-variable.
• Calculate the total mixed costs for IBM Corporation ($1.61 billion).
• Prepare a cost-volume-profit analysis assuming sales revenue of $2.5 billion.