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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
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): Segment North America Segment International Segment AWS Total Sales $236,282 Operating expenses (227,631) $104,412 (103,695) $45,370 $386,064 (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: Percentage of Variable Segment Operating Expenses North American 85% International AWS 80% 75% a. Prepare a variable costing income statement for Amazon.com by segment. Round all amounts to the nearest million. Line Item Description Amazon.com, Inc. Variable Costing Income Statement (in millions) North America Sales International AWS Total 236,282 104,412 45,370 386,064
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