Given the following data: sales $1,500,000; gross profit $640,000; net income $40,000 and income tax expense $35,000. What is the common-size percentage for operating expenses?
A) 37.7%
B) 42.7%
C) 95.0%
D) 97.3%

Question

Quizplus · Accepted Answer

Operating expenses can be calculated as sales minus gross profit minus net income minus income tax expense. The common-size percentage for operating expenses is then calculated by dividing operating expenses by sales and multiplying by 100.

Given the Following Data: Sales $1,500,000; Gross Profit $640,000; Net