Maureen Company has the following income statement for the year ending December 31,2016:
$\begin{array}{ll}
\text { Sales } & \$ 1,562 \
\text { Cost of goods sold } & {806} \
\text { Gross profit } &{756}
\end{array}$
Operating expenses:
$\begin{array}{ll}
\text { Wage expense } & 110 \
\text { Depreciation expense } & 76 \
\text { Rent expense } & 36 \
\text { Miscellaneous expense } & \underline{70} \
\text { Total operating expenses } & \underline{292} \
\text { Operating income } & 464 \
\text { Income tax expense } & \underline{162} \
\text { Net income } & \$ 302
\end{array}$
If Maureen Company prepares a common size income statement,what will they report for Wage expense?
A) 7.0%
B) 10.2%
C) 34.4%
D) 66.1%

Question

Quizplus · Accepted Answer

The common size percentage for Wage expense is calculated by dividing the Wage expense by Sales and then multiplying by 100. So, (110 / 1562) * 100 = 7.0%.

Maureen Company Has the Following Income Statement for the Year Sales $1,562 Cost of goods sold 806 Gross profit 756\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array} Sales Cost of goods sold Gross profit ​$1,562806756​

Maureen Company Has the Following Income Statement for the Year $\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array}$