Tableau Software provides business analytics software products, including Tableau Desktop, Tableau Server, and Tableau Online. It is considered a leader in the data analytics/business intelligence movement. However, Tableau doesnt just license its products for use by others. It also provides maintenance, support, training, and professional services to various customers. As a consequence, its income statement shows two sources of operating revenues (product licenses/maintenance and services) and two related costs of goods/services provided to customers. Presented below are the items adapted from its recent income statement for the year ended December 31 (in thousands, except per share amounts). Net earnings per share were minus $2.35, which would normally be noted as ($2.35), and the weighted-average shares used in the computation was 78,869.

Cost of licenses	$	13,534		Maintenance and services revenue	$	447,855
Cost of maintenance and services		100,025		Other income		12,266
General and administrative expense		102,871		Sales and marketing expense		517,446
Income tax expense		6,861		Research and development expense		334,148
License revenue		429,204

Required:

1. Recognizing that Tableau has two sources of operating revenues, prepare a classified (multiple-step) income statement.

2. Which source of operating revenues produces the higher gross profit?