Using the Internet, find the annual report of one retail company and one manufacturing company. Print out each companys 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 companys 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?

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