Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In $$ millions) Microsoft(MS) Proctor & Gamble 39,788 68,222 6,200 6,184 8,677 4,166 $14,561 Revenues Cost of Revenues Research & dev. Sales & Mktg. Gen admin 33,125 00,000 00,000 21,848 $13,249 Operating income Assume that the only variable cost for both companies is "Cost of Revenues", hence: 1. compute the contribution margin percentage of MS and Proctor 2. Suppose each company increases its revenue by $10 million. Compute the increase in operating income of both companies.
Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In $$ millions) Microsoft(MS) Proctor & Gamble 39,788 68,222 6,200 6,184 8,677 4,166 $14,561 Revenues Cost of Revenues Research & dev. Sales & Mktg. Gen admin 33,125 00,000 00,000 21,848 $13,249 Operating income Assume that the only variable cost for both companies is "Cost of Revenues", hence: 1. compute the contribution margin percentage of MS and Proctor 2. Suppose each company increases its revenue by $10 million. Compute the increase in operating income of both companies.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter16: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 29E
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![Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In S$ millions)
Proctor & Gamble
68,222
Revenues
Cost of Revenues
Microsoft (MS)
39,788
6,200
6,184
33,125
00,000
8,677
00,000
4,166
21,848
Operating income
$14,561
$13,249
Assume that the only variable cost for both companies is "Cost of Revenues", hence:
1. compute the contribution margin percentage of MS and Proctor
2. Suppose each company increases its revenue by $10 million. Compute the increase in operating income
of both companies.
Research & dev.
Sales & Mktg.
Gen admin](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Faed3de54-433a-4da2-b51c-03cbeee1d515%2F1e2179b5-a4af-417d-b5b5-87d1b6de2753%2Fl4k56ml_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Q4) below are the actual statements of operating income for Microsoft & Proctor Gamble (In S$ millions)
Proctor & Gamble
68,222
Revenues
Cost of Revenues
Microsoft (MS)
39,788
6,200
6,184
33,125
00,000
8,677
00,000
4,166
21,848
Operating income
$14,561
$13,249
Assume that the only variable cost for both companies is "Cost of Revenues", hence:
1. compute the contribution margin percentage of MS and Proctor
2. Suppose each company increases its revenue by $10 million. Compute the increase in operating income
of both companies.
Research & dev.
Sales & Mktg.
Gen admin
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