Revenue and Expense Data for Bluestem Company Are as Follows

question 141

Essay

Revenue and expense data for Bluestem Company are as follows: $$\begin{array} { l r r } & \text { Year } 2 & \text { Year } 1 \\\text { Administrative expenses } & \$ 37,000 & \$ 20,000 \\\text { Cost of goods sold } & 350,000 & 320,000 \\\text { Income tax expense } & 40,000 & 32,000 \\\text { Sales } & 800,000 & 700,000 \\\text { Selling expenses } & 150,000 & 110,000\end{array}$$ ​ (a) Prepare a comparative income statement, with vertical analysis, stating each item for both years as a percent of sales.
(b) Comment upon significant changes disclosed by the comparative income statement. Round percentages to one decimal place.

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Definitions:

Customer Arousal

The state of being physically or emotionally stimulated as a response to marketing or product experiences.

Positive or Negative

Terms used to describe the valence of emotions, experiences, or outcomes, indicating whether they are viewed as favorable or unfavorable.

Co-consumers

Individuals who are present and potentially interact with one another in a consumption environment, influencing each other's experiences.

Marketing Contexts

The various environments or situations in which marketing activities occur, including social, economic, and cultural factors.