The pottery shop opened a new branch this year. The followingfigures show the sales volume and advertising expenses.
Sales LY $900,000
Sales TY $1,050,000
Sales plan for next year $975,000
Advertising costs LY $28,500
Advertising costs TY $32,000
Advertising plan $27,500
a. What do the sales trends reflect?
b. What do the advertising costs reflect?
c. What is the percent of increase in sales from last year tonext year's plan?
d. What is the percent of increase or decrease in advertisingbetween last year and next year?
e. What is the percent of decrease in sales from this year tonext year?
f. Why do you think these fluctuations of volume and expensesmight be planned?
