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(Solved): CVP Analysis Using Published Financial Statements Condensed data in millions of dollars from Mic ...



CVP Analysis Using Published Financial Statements Condensed data in millions of dollars from Microsoft's 2019 and 2018 income statements follow: 20192018Revenues$201, 349$176,576 Total cost of revenues and operating expenses132,614120, 483Operating income$68, 735$56,093 Required a. Develop a profit equation for Microsoft's annual cost of revenues and operating expenses using revenues as the activity. Note: Round fixed cost amount to the nearest whole million dollar. Note: Round the variable cost ratio to two decimal places (for example, round 0.6555 to 0.66) in your answer below and in all calculations. Total cost (in millions) $Answer 1 + $Answer 2 X where X is revenue in millions of dollars. b. Determine Microsoft's annual break - even point. Note: Round amount to the nearest million dollar. $Answer 3 million c. Predict operating profit for 2020, assuming 2020 sales of $240, 000 million. Note: Round amount to the nearest million dollar. $Answer 4 million



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