Prior to beginning work on this discussion, go to American Airlines (Links to an external site.)’ and Samsung Electronics (Links to an external site.)’ most recent annual reports by clicking on the “Investor Relations” link found at each company’s website. The companies and their Internet addresses are listed below.
American Airlines Group Inc. (AAL)
Samsung Electronics Co., Ltd. (SSNLF)
American Airlines and Samsung are offering their products and services like many other companies over the internet. In an initial post of at least 200 words use the most recent annual filings for American Airlines and Samsung Electronics in Form 10-K to answer the questions below:
- Determine the following for each company:
- A product description
- A product price
- A list of costs that are required to produce and sell the product selected in the product description as listed in the annual report on SEC Form 10-K
- Whether the costs identified above are fixed costs or variable costs.
- Which of the products do you believe has the largest markup on variable cost?
- While Samsung is a hugely popular brand, holding its shares has never been easy for U.S. investors. How can an investor buy Samsung stock in the US?
Guided Response: Review several of your peers’ posts. In a post of at least 100 words, respond to at least two of your peers’ posts in a substantive manner. Provide information that they may have missed or may not have considered in regard to why variable-cost pricing can trick managers into setting prices so low that they hurt profits, or worse yet, cause net losses since it does not fully account for fixed costs. Do you agree with your peers’ findings? Why or why not?