Johnson Controls International plc
 Data for the year ended September 30, 2023:

Item	Amount
Revenue	$30,000,000,000
Cost of Goods Sold	$20,000,000,000
Operating Expenses	$6,000,000,000
Income Tax Expense	$2,000,000,000
Net Income	$2,000,000,000
Total Assets	$50,000,000,000
Total Liabilities	$30,000,000,000
Shareholders' Equity	$20,000,000,000

Managerial Accounting Process:

1. Recording Costs:
   • Johnson Controls records its cost of goods sold (COGS) at $20 billion, reflecting costs associated with manufacturing HVAC equipment and building automation systems.
   • Operating expenses, including R&D, sales, and administrative costs, are recorded at $6 billion.
2. Analyzing Costs:
   • Conduct project-level profitability analysis to assess the financial performance of different building efficiency projects and product lines.
   • Perform cost-volume-profit analysis to evaluate the impact of pricing strategies and production volumes on profitability.
3. Reporting Costs:
   • Present COGS in the income statement to illustrate the direct costs associated with manufacturing and distributing HVAC and building automation products.
   • Detail operating expenses to provide transparency on costs incurred to support innovation, sales initiatives, and corporate functions.
   • Provide cost allocation reports to show how costs are distributed across different business units, geographic regions, and customer segments.

Requirements:

1. Calculate Johnson Controls' gross profit margin and discuss cost management strategies in the building efficiency and HVAC industry.
2. Determine Johnson Controls' operating profit margin.

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