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.

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Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is