Variable and Fixed Costs Annual Report Using the Internet, find the annual report of one retail company and one manufacturing company.
Print out each company’s income statement. You can find these statements in the annual reports on companies’ websites.
Review each income statement, and provide an analysis of which operating costs are likely to be variable and which are likely to be fixed. Include copies of both income statements when submitting your answer.
How would you expect a retail company’s mix of variable and fixed operating costs to differ from that of a manufacturing company?
How might the managers of these companies use cost behavior information?
