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