In Carl's Super Sub Sandwich Company decided to raise prices to cover their costs. At the same time, they increased the amount and quality of the ingredients on their sandwiches to justify the price increases. The end goal was to increase revenues and their longterm profits. They had determined that the increased prices would not negatively affect demand, but instead an increased advertising budget would result in more demand and more loyal customers. Below are the year financial results of their efforts. Please succinctly answer the following questions. Make sure to include a justification for your answers based on the data presented.
Perform a vertical analysis of the income statement. Show your results in a table.
Perform a horizontal analysis of the income statement. Show your results in a table.
How did the strategy affect the top line?
How did the strategy affect the bottom line?
Was the strategy successful? Explain your answer based on the data presented.
tableCarls Super Sub Sandwich CompanyCONSOLIDATED STATEMENTS OF OPERATIONStableFiscal year endedJuly tableFiscal year endedJuly tableFiscal year endedJuly tableFiscal year endedJune Net sales,$$$