Using the MSFT financial statements, calculate the variance for the balances listed below (some are clearly stated and some you might have to calculate).

Cost of services

Selling, general, administration and other

Gross Profit of services

Gross Profit of products

The answer must include:

% change from 2017 to 2018 $ change from 2017 to 2018 you must state whether it is a favorable or unfavorable variance from 2017 to 2018

(In millions, except per share amounts) Year Ended June 30, Revenue: Product Service and other Total revenue Cost of revenue: Product Service and other Total cost of revenue Gross margin Research and development Sales and marketing General and administrative Impairment and restructuring Operating income Other income (expense), net Income before income taxes Provision for income taxes Net income Earnings per share: Basic Diluted Weighted average shares outstanding: Basic Cash dividends declared per common share Diluted 2018 2017 2016 S 64,497 63,811 $ 67,336 45,863 32,760 23,818 110,360 96,571 91,154 15,420 15,175 17,880 22,933 19,086 14,900 38,353 34,261 32,780 72,007 62,310 58,374 14,726 13,037 11,988 17,469 15,461 14,635 4,754 4,481 4,563 306 1,110 35,058 29,025 26,078 1,416 876 (439) 36,474 29,901 25,639 19,903 4,412 5,100 $ 16,571 $ 25,489 $ 20,539 $ 2.15 $ 3.29 S 2.59 2.13 3.25 $ 2.56 S 7,700 7,794 1.68 69 7,746 7,832 1.56 7,925 8,013 1.44