1. If given your choice, which would you, a business owner prefer to see when studying a series of income statements from consecutive periods...and WHY did you choose that one

a. steady increase in sales or revenues, with little change in profits OR

b. steady increase in profits despite a slow decline in sales OR

c. steady slow decline in expenses

2. [completely separate from question 1]

Under normal conditions, if sales or revenues are steadily increasing period to period, what would you expect to happen to profits? Why?