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    Examine the principles, problems and policies of Target.

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    Use the Google search engine to locate the home page of Target. Find and review the company's income statement in its annual report and classify the nonrevenue items as either fixed or variable costs. Are all costs clearly identifiable as either fixed or variable? What item would be considered accounting profit? Would economic profit be higher or lower than the accounting profit?

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    The income statement of target is found here. http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-051749

    We now classify each expense as fixed of variable,

    Cost of sales - variable
    Selling, general and administrative expenses - see next section
    Credit card expenses - variable
    Depreciation and amortization - fixed
    Nonrecourse debt collateralized by credit card receivables - fixed
    Other interest expense - fixed

    The only cost that may not be immediately ...

    Solution Summary

    Examine the principles, problems and policies of Target.