Answer:
Following Statement is true
Operating income has increased as a percentage of revenue.
Vertical Analysis
Year 2 Year 1
Fees Earned $153,500 $149,700
Operating expenses <u>$122,800</u> <u>$127,245</u>
Operating Income $30,700 $22,455
Operating Income as percentage of sales 20% 15%
Operating Income as percentage of sales is increased in year 2.
<u>Which of the following statements are true?</u>
Operating income has decreased as a percentage of revenue.
Operating income has increased as a percentage of revenue.
None of these choices are correct.
Operating expenses have increased as a percentage of revenue