Olivera Company provides the following data for the year 2013: On a vertical analysis, what percentage would be shown for operating expenses?

Question

Olivera Company provides the following data for the year 2013:  On a vertical analysis, what percentage would be shown for operating expenses?

Quizplus · Accepted Answer

To calculate the vertical analysis percentage, we need to divide the expense (operating expenses in this case) by the total revenue for the year and then multiply by 100.

Operating expenses = $1,798,000 
Total revenue = $7,512,000

Operating expenses as a percentage of revenue = (Operating expenses / Total revenue) x 100 
= ($1,798,000 / $7,512,000) x 100 = 23.9%

Therefore, the correct answer is C, 23.9%.

Olivera Company Provides the Following Data for the Year 2013