fiscal policies and the attitudes towards taxation of companies' managers.
I have obtained the income statement of Xerox Corporation from the MergenT financial information service, which provides articles about all major companies in the U.S.A. It is easy to notice that the net income (or loss) is analyzed in a separate manner from Fixed Costs, and there is no obvious connection between fixed elements and profit.
The goal of each company is to obtain a fixed profit margin, so that shareholders, investors, creditors and other interested parties may rely on it. However, approaching the profit margin issue conservatively reduces the chances of a corporation to flexibly adjust to changes in the economic environment.
The second point, referring to production of articles for which the profit is negative, is not something to be found in an income statement and is more of an internal problem of the company. However, Xerox sells a lot of products for which servicing is necessary. Service Spare parts may prove unprofitable to make. Still, it is inconceivable to think that Xerox does not provide such services just because it costs a little more than it brings, as long as the good name of the company is at stake.
The third point is impossible to make in Xerox's case, as this is one of the corporations that have performed very well lately. It is unlikely that Xerox's managers resort to such practices in order to simply cheat the revenue service.
Xerox's future activity should be concentrated on maintaining the current levels of revenue and net income. Xerox's performance has been quite surprising in the last…