using vertical analysis. 2. Nicole Englezakis manages a South African restaurant in a large southern city. The owner wants to know how well Nicole did this year at generating sales, controlling expenses, and providing a profit. Complete Nicole's P&L below a. When comparing this year to last year, was Nicole's marketing expense in dollars higher or lower? b. Was Nicole's marketing expense percentage higher or lower this year? c. Do you think that her marketing expense this year positively or negatively contributed to her revenues? Why? d. When comparing this year to last year, was Nicole's labor expense in dollars higher or lower? e. Was Nicole's labor expense percentage higher or lower this year? f. Do you think that her salaries and wages expense this year positively or negatively contributed to her net income? Why? g. The owner promised Nicole that he would give her a raise if she increased the operation's net income by at least 2% of total sales. Should Nicole receive a raise? Why or why not? Nicole's P&L Last Year ($) This Year ($) % SALES 3,706,381 647,555 3.746,245 1.255,358 1,282.656 145,607 1,611,630 162.231 Food Beverage Total Sales COST OF SALES Food Beverage Total Cost of Sales LABOR Management Staff Employee Benefits Total Labor 348,615 882,295 190,394 392,626 864,153 196790 PRIME COST Last Year ($) This Year ($) OTHER CONTROLLABLE EXPENSES Direct Operating Expenses Music and Entertainment Marketing Utilities Administrative and General Repairs and Maintenance Total Other Controllable Expenses 234,670 1,127 84.120 141,688 128,103 66,416 232,571 13,418 111,813 156,538 125.230 62,616 CONTROLLABLE INCOME NON-CONTROLLABLE EXPENSES Occupancy Costs Depreciation Total Non-Controllable Expenses 230,400 79,699 310,099 211,200 98,397 309,597 RESTAURANT OPERATING INCOME Interest Expense 166,560 149.405 INCOME BEFORE INCOME TAXES Income Taxes 147,192 245,194 NET INCOME