Segment Contribution Margin Analysis Amazon.com, Inc. (AMZN) organizes its operations into three segments: North America, International, and Amazon Web Services (AWS). The North America and International segments primarily report amounts earned from online consumer retail sales. The AWS segment offers a broad set of technology services, including computing, storage, database, analytics, and other cloud-based services. For a recent year, Amazon reported the following segment results (in millions): Line Item Description Segment North America Segment International Segment AWS Total Sales $236,282 $104,412 $45,370 $386,064 Operating expenses (227,631) (103,695) (31,839) (363,165) Operating income $8,651 $717 $13,531 $22,899 Assume the following percentages of total operating expenses for each segment are variable: Segment Percentage of Variable Operating Expenses North American 85% International 80% AWS 75% Question Content Area a. Prepare a variable costing income statement for Amazon.com by segment. Round all amounts to the nearest million. Amazon.com, Inc. Variable Costing Income Statement (in millions) Line Item Description North America International AWS Total Sales $Sales 236,282 $Sales 104,412 $Sales 45,370 $Sales 386,064 Variable operating expenses Variable operating expenses 193,486 Variable operating expenses 82,956 Variable operating expenses 23,879 Variable operating expenses 300,322 Contribution margin $Contribution margin 42,796 $Contribution margin 21,456 $Contribution margin 21,491 $Contribution margin 85,742 Fixed operating expenses Fixed operating expenses 34,145 Fixed operating expenses 20,739 Fixed operating expenses 7,960 Fixed operating expenses 62,843 Operating income $Operating income 8,651 $Operating income 717 $Operating income 13,531 $Operating income 22,899 Feedback Area Feedback Partially correct Question Content Area b. Compute the contribution margin ratio for each segment. Round ratios to the nearest tenth of a percent. Segment Contribution Margin Ratio North America fill in the blank 1 of 3 4 % International fill in the blank 2 of 3 79 % AWS fill in the blank 3 of 3 53 %