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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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