Polaris's financial statements and notes in Appendix A provide evidence of growth potential in its sales.
Required
1. Identify at least two types of costs that will predictably increase as a percent of sales with growth in sales.
2. Explain why you believe the types of costs identified for part 1 will increase, and describe how you might assess Polaris' success with these costs.
Fast Forward
3. Access Polaris's annual report for a fiscal year ending after December 31, 2011, from its Website [Polaris.com] or the SEC's EDGAR database [www.sec.gov]. Review and report its growth in sales along with its cost and income levels (including its gross margin ratio).