Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l }&2011&2010\
\text {Sales revenue }&\$97,000&\$86,200\
\text { Less: Cost of goods sold}&45,600&53,400\
\text {Gross profit }&51,700&32,800\
\text { Less: Selling and administration costs Income before }&22,500&18,300\
\text {income tax }&29,200&14,500\
\end{array}$

-The common size percentage for selling and administration costs in 2011 was:
A)21.2%
B)23.1%
C)43.5%
D)77.0%

Question

Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l  }&2011&2010\
 \text {Sales revenue }&\$97,000&\$86,200\
 \text { Less: Cost of goods sold}&45,600&53,400\
 \text {Gross profit }&51,700&32,800\
 \text { Less: Selling and administration costs Income before }&22,500&18,300\
 \text {income tax }&29,200&14,500\
\end{array}$

-The common size percentage for selling and administration costs in 2011 was:
A)21.2%
B)23.1%
C)43.5%
D)77.0%

Quizplus · Accepted Answer

The common size percentage for selling and administration costs in 2011 is calculated by dividing the selling and administration costs by the sales revenue for the same year, then multiplying by 100 to get a percentage. For 2011, this is $\frac{22,500}{97,000} \times 100 = 23.1\%$.

Use the Following Information for Questions: Consider the Following Income

Use the Following Information for Questions:
Consider the Following Income