Q1 Complete the trend indexes for Total expenses and Net income using the amounts listed below. To compute, divide each amount by the amount of the base year and multiply by 100. Record the resulting trend index in the shaded area below. Use 2007 as the base year.

Pepsico ($ in millions)	2010		2009		2008		Base Year 2007
Sales Revenues	$57,838	147	$43,232	110	$43,251	110	$39,474	100
Total Expenses	$51,518.00	0	$37,286		$38,109		$33,794
Net Income	$6,320	0	$5,946		$5,142		$5,682

Q2 From 2007 to 2010 sales growth for PepsiCo was 47%. During the same period, total expenses increased __________%. When net sales increase, expenses would be expected to ( increase / stay the same / decrease). It is favorable when sales increase by 47% and expenses increase at a ( greater / lesser) rate than 47%. From 2007 to 2010 ( revenues / expenses) of PepsiCo increased at a greater rate, which is ( favorable / unfavorable), resulting in a ( small / large) increase in net income.

Q3 Assume PepsiCo had a goal of increasing profits by 5% each year. This goal was ( met / not met).

Q4

a) The best year financially for PepsiCo was ( 2010 / 2009 / 2008). Why?

b) The worst year financially for PepsiCo was ( 2010 / 2009 / 2008). Why?

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