Question 29 The car company has growing revenue, but not profits. Can you identify what is causing the problem? Consolidated Income Statement for The Car Company 31-Dec-18 31-Dec-17 31-Dec-16 31-Dec-15 Revenues $ 945,663 $ 879,467 $ 791,520 $ 633,216 % Growth Rate 8% 11% 25% Cost of Goods Sold $ 453,918 $ 430.939 $ 403,675 $ 329,272 % Percent of Sales 48% 49% 51% 52% Gross Profit $ 491,745 448,528 $ 387,845 $ 303.944 $ 51% % Percent of Sales 52% 49% OPERATING EXPENSES $ 170,219 $ 167.099 $ 158,304 $ 145.640 20% 23 5 39.718 $ 47.491 19.700 15.830 % Percent of Sales 48% 4970 Gross Profit $ 491,745 $ 448,528 $ 387,845 $ 303,944 percent of Sales 52% 51% 49% 48% OPERATING EXPENSES Salaries $ 170,219 $ 167,099 $ 158,304 $ 145,640 % Percent of Sales 18% 19% 20% 23% Marketing $ 43,973 $ 47,491 $ 44,325 % Percent of Sales 4% 6% Overhead $ 18,913 $ 21,987 $ 19,788 $ 15,830 % Percent of Sales 2% 3% $ Travel $ 181,567 $ 129,282 72,662 32,927 $ 5% % Percent of Sales Company Parties $ 27,852 27,852 $ 27,852 $ 27,852 % Percent of Sales 3% $ 3% $ 4% 4% Total Operating Expenses $ 438.270 390,193 $ 326,097 $ 266,575 % Percent of Sales 46% 44% 41% 42% Operating Income (Loss) $ 53,475 $ 58,335 $ 61,748 $ 37,369 % Percent of Sales 7% 8X HTML Editor