Each of you should access the annual report (or Form 10-K filed with the SEC) for one publicly traded company in the industry you were assigned above. In addition to the company’s own website, a great source is the SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) service. This free source is available by going to the “Filings” section of SEC (Links to an external site.) and clicking on “Company Filings Search” and then entering the “Company name." Then look for the "10-K" reports needed.

Answer all of the following questions about your company based on the Income Statement:

1. Calculate the percentage change from your selected company's sales and its “earnings from continuing operations” from 2018 to 2019.
2. Which increased more, operating earnings or sales? Why? What role did fixed and variable costs play?
3. Find the operating expenses for 2018. If this cost is thought of in the context of the number of units of products or services sold, should it be considered as primarily fixed or variable in nature? Why?