ThedatabelowisthatofOsborneLtd,asmallUKmanufacturingorganisation

	ThisyearActual	LastYearActual	ThisyearBudget
Sales	187,500	185,000	192,500
Costofsales	(91,875)	(88,800)	(96,250)
Grossprofit	95,625	96,200	96,250
Grossprofitmargin:	51.00%	52.00%	50.00%

With reference to the data provided, which ONE of the following statements is TRUE?

1. Theactualsalesvalueforthisyearishigherthanthatexpectedforthisyearbut less than the actual sales value for last year
2. The actual gross profitmarginfor this year is higher than thatexpectedfor this year but less than the actual gross profit margin achieved last year
3. The budget for this year indicated a small increase in profits compared to last year's actual results and this target was achieved
4. Thevalue forcostofsales(budgetedand actual)is alwaysgreaterthan(or equal to) 50% for the sales value