Question 1 [5 points]
Selected information for Global Filter Company is given below.
Gross profit from sales
Operating expenses
2021 2020 2019 2018 2017
\$127,600 \$123,200 \$117,700 \$114,400 \$110,000
53,550 51,300 49,050 47,250 45,000
a) Calculate the percentage change for these items using 2017 as the base year. Please make sure your final answer(s) are in percentage form and are accurate to the nearest whole percent. (For example: 12%)
Gross profit from sales
Operating expenses
2021 2020 2019 2018
b) Assuming all other things are constant, indicate whether the trend in operating expenses is favorable or unfavorable compared to the trend in gross profit from sales.
The trend is (select one).
favorable
unfavorable