The pottery shop opened a new branch this year. The following figures show the sales volume...

The pottery shop opened a new branch this year. The following figures 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 to next year's plan?

d. What is the percent of increase or decrease in advertising between last year and next year?

e. What is the percent of decrease in sales from this year to next year?

f. Why do you think these fluctuations of volume and expenses might be planned?

Expert Solution

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Colby Messinger answered 2 years ago

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