Using 2006 as the base year, prepare a trend analysis of the following data, and tell whether the situation shown by the trends is favorable or unfavorable. (Round your answers to one decimal place.)

2007 2008 $25,520 $23,980 $24,200 $22,880 $22,000 15,400 15,540 14,700 14,000 2006 2010 2009 Net sales Cost of goods sold General and 17,220 administrative expenses Operating incomc 5,280 3,020 5,184 3,396 5,088 3,572 4,896 3,284 4,800 3,200