Consider the following income statement data for Odem Inc.:
-The common-size percentage for selling and administration costs in 2016 was
A) 21.2%.
B) 23.1%.
C) 43.5%.
D) 77.0%.

Question

Consider the following income statement data for Odem Inc.: 
-The common-size percentage for selling and administration costs in 2016 was
A) 21.2%. 
B) 23.1%. 
C) 43.5%. 
D) 77.0%.

Quizplus · Accepted Answer

To calculate the common-size percentage for selling and administrative costs, we need to divide the selling and administrative costs by the total revenue for 2016.

Selling and administrative costs = $27,800 / Total revenue = $120,500 = 0.231 or 23.1%

Therefore, the common-size percentage for selling and administrative costs in 2016 was 23.1%.

Consider the Following Income Statement Data for Odem Inc