Internet Exercise #1

The websites of selected companies appear below:

• Biolea (http://www.biolea.gr).
• Evian at (http://www.evian.com).
• Gulf Craft Inc. (http://www.gulfcraftinc.com).
• Ircon International Limited (http://www.irconinternational.com).

Review the information about the operations of each company that is provided on the company's website. Write a brief summary (one paragraph) for each of the four companies that includes a:

• A brief description of the operations of the company and
• Two specific examples of possible:
  • Fixed costs,
  • Variable costs, and
  • Mixed costs.

Internet Exercise #2

Most retailers have a high proportion of variable costs (cost of goods sold) in their cost structures. Search the Securities and Exchange Commission's EDGAR corporate filings data base at http://www.sec.gov/edgarhp.htm for the annual report of Form 10-K of a major retail merchant. Using information from each of the three years included in the company's most recent Form 10-K, perform the following:

• Calculate how the corporation's costs have changed as sales have changed over the time period covered by the Form 10-K. (In particular, restate cost of goods sold as a percentage of sales.)
• Calculate the other major cost categories as a percentage of sales over the time period covered by the Form 10-K.

Report the name of the company selected, summarize the financial results and calculations made related to sales and cost of goods sold for the three most recent years, and comment on any trends noted.

Internet Exercise #3