Question

Question 1 of 10 Express net income as a common-size percentage using the following data. Sales – $45,000; cost of goods sold – $29,340; gross profit from sales – $15,660; operating expenses – $10,800; net income – $4,860.
A. 100 percent
B. 31 percent
C. 12 percent
D. 10.8 percent

Answer 1

Answer:

10.8 percent

Explanation:

Sales is $45,000

Cost of goods sold is $29,340

Gross profit from sales is $15,660

Operating expenses is $10,800

Net income $4,860

Therefore the net income as a common size percentage can be calculated as follows

= 10800/1000

= 10.8 percent