Many businesses are offering their products and services over the Internet. Two of these companies and their Internet addresses are listed below.

Company Name __________________ Internet Address (URL) _________ Product

Delta Air Lines (DAL) ................... www.delta.com....................... Airline tickets

Amazon.com (AMZN) .................. www.amazon.com ............... Books

1. In groups of three, assign each person in your group to one of the Internet sites listed above. For each site, determine the following:

A product (or service) description.

A product price.

A list of costs that are required to produce and sell the product selected in part (1) as listed in the annual report on SEC Form 10-K.

Whether the costs identified in part (3) are fixed costs or variable costs.

2. Which of the products do you believe has the largest markup on variable cost?