Question: Review Research In Motion's income statement in Appendix A and identify its revenues for the years ended February 27, 2010, February 28, 2009, and March 1, 2008. For the year ended February 27, 2010, Research In Motion reports the following product revenue mix. (Assume that its product revenue mix is the same for each of the three years reported when answering the requirements.)
Devices Service Software Other
81% 14% 2% 3%
Required: 1. Compute the amount of revenue from each of its product lines for the years ended February 27, 2010, February 28, 2009, and March 1, 2008.
2. If Research In Motion wishes to evaluate each of its product lines, how can it allocate its operating expenses to each of them to determine each product line's profitability?
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3. Access Research In Motion's annual report for a fiscal year ending after February 27, 2010, from its Website (RIM.com) or the SEC's EDGAR database (sec.gov). Compute its revenues for its product lines for the most recent year(s). Compare those results to those from part 1. How has its product mix changed?