If Crane Legal Supply's net sales increased from $42,000 to $84,000 and its operating expenses increased from $28,000 to $49,000, the vertical analysis based on net sales would show the following for operating expenses for the two periods: (Round your final answer to the nearest percentage.)
A)67% and 58%.
B)58% and 67%.
C)150% and 171%.
D)171% and 150%.

Question

Quizplus · Accepted Answer

In the first period, operating expenses as a percentage of net sales are $28,000 / $42,000 = 0.6667 or 67% (rounded to the nearest percentage). In the second period, they are $49,000 / $84,000 = 0.5833 or 58% (rounded to the nearest percentage).

If Crane Legal Supply's Net Sales Increased from $42,000 to $84,000