Complete the table below using vertical analysis, then answer the subsequent questions:

Nicole's P&L
	Last Year	%	This Year	%
SALES:
Food	$3,706,381		$3,746,245
Beverage	$647,555		1,255,358
Total Sales
COST OF SALES:
Food	1,282,656		1,611,630
Beverage	145,607		162,231
Total Cost of Sales
GROSS PROFIT:
Food	2,423,725		2,134,615
Beverage	501,948		1,093,127
Total Gross Profit
OPERATING EXPENSES:
Salaries and Wages	1,230,910		1,256,779
Employee Benefits	190,394		196,790
Direct Operating Expenses	234,670		232,571
Music and Entertainment	4,427		13,418
Marketing	84,126		111,813
Utility Services	141,688		156,538
Repairs and Maintenance	66,416		62,616
Administrative and General	128,403		125,230
Occupancy	230,400		211,200
Depreciation	79,699		98,397
Total Operating Expenses
Operating Income
Interest	166,560		149,405
Income Before Income Taxes
Income Taxes	147,192		245,194
Net Income

1. When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? Last year Nicole's marketing expenses were lower than this year. Lower by $27,687.

1. Was Nicole's marketing expense % higher or lower this year?

1. Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why?

1. When comparing this year to last year, were Nicole's salaries and wages expenses in dollars higher or lower? Last year Nicole's expenses were lower than last year. Lower by $25,869.

1. Was Nicole's salaries and wages expense % higher or lower this year?

1. Do you think that her salaries and wages expense this year positively or negatively contributed to her net income? Why?

1. The owner promised Nicole that he would give her a raise if she increased her profit margin by at least 2%. Should Nicole receive a raise? Why or why not?