Program Learning outcome (PLO) Accounting PLO: Utilize critical thinking skills, together with ethical values, to evaluate accounting and financial information and formulate business decisions. Jones Company is a producer of high quality, branded products. Its brand is a household name synonymous with quality for over 25 years. Recently, a discount store began to compete in the territory by offering low quality products at cheaper prices. While Jones believes its customers value quality, Jones was reluctant to let the discounter gain a presence in the marketplace. Jones reacted by significantly reducing the prices of its products to match those of its new competitor and cut certain costs to minimize the effects on its profit. The results of this strategy can be seen in the financial statements of Jones Company below. 2016 2014 10,800 10,500 9,950 Units 89,550 100% 89,250 100% 86,400 100% Sales 49,750 56% 44,625 50% 37,800 44% Gross Profit 9,453 11% 5,250 6% 5,390 6% Advertising 13,925 16%. 10,500 12% 5,410 65% Product Development (1) 11,448 13% 15,750 18% 16,200 19% Administration 14,925 17% 13,125 15% 10,800 13% Net Income (1) Research, new products, innovation