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Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In $$ millions) Revenues Microsoft(MS) 39,788 Cost of Revenues 6,200
Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In $$ millions) Revenues Microsoft(MS) 39,788 Cost of Revenues 6,200 Research & dev. 6,184 Sales & Mktg. 8,677 Gen admin 4,166 Operating income $14,561 Proctor & Gamble 68,222 33,125 00,000 00,000 21,848 $13,249 Assume that the only variable cost for both companies is "Cost of Revenues", hence: 1. compute the contribution margin percentage of MS and Proctor 2. Suppose each company increases its revenue by $10 million. Compute the increase in operating income of both companies.
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