Analyse the above table and then write a report in English identifying the possible reasons accouiting for the trend of the operating profit

ANALYSIS

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From 2002 through to 2004 , the average price of a unit has been falling This has led to the increase in total unit sales . Thus , the average price per unit was the highest in 2002 and the unit sales were lowest On the other hand , the average price per unit falls and becomes the lowest in 2004 and correspondingly the total unit sales reach a new highest if compared across all the three years . This would suggest that the average price of

a product is inversely proportional to its total sales . In other words , the more inexpensive a product gets , the more people buy it and hence the more of it is sold thus increasing the total sales

Since the market share has substantially increased with the increase in total unit sales , it shows that the average price drop is the only factor responsible for the increase in total unit sales and in the increase of the market share . Thus , we can draw the conclusion that if in a particular case , the drop in the average price is the sole reason for the increasing of the total unit sales then the market share will also be inversely proportional to the average price . In other words , the lower the average price , the higher will be the market price

The operating profit is calculated by subtracting from the net revenue certain expenses such as raw material and manufacturing costs , sales commission , promotion advertising , sales commission...