The accounting manager of a manufacturer of farming equipment was asked by the CFO to analyze the companys last 5 years of operations. The accounting manager prepared the following analysis:

Common Base Year Income Statement
Base Year = December 31, Year 1
	Year 2	Year 3	Year 4	Year 5	Year 6
Sales	1.01	1.03	1.05	1.07	1.10
Cost of goods sold	1.05	1.03	1.02	1.00	0.98
Selling and administrative expenses	1.01	1.01	1.01	1.02	1.03
Research and development	1.00	0.98	0.99	1.00	1.01
Income from operations	1.02	1.02	1.03	1.05	1.09

Which one of the following statements is consistent with this analysis?

• A.The company should decrease research and development expenses.

• B.The new marketing strategy has been unsuccessful.

• C.The company should decrease the sales force.

• D.The new production process has successfully reduced manufacturing expenses.