Katz Group had the following income statement for the month of May.
$\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the administrative expense percentage?
A)15%
B)16%
C)17%
D)19%

Question

Katz Group had the following income statement for the month of May.
 $\begin{array}{l}
\text { Sales revenue } &&\$428,000\
\text { Cost of goods sold } &&205,440\
\text { Gross margin }&&222,560\\text { Less: }\
&\text { Selling expenses }&81,320\&\text { Administrative expenses }&72,760\
\text { Operating income }&&\$68,480
\end{array}$
-Refer to the Figure.What was the administrative expense percentage?
A)15%
B)16%
C)17%
D)19%

Quizplus · Accepted Answer

The administrative expense percentage is calculated by dividing the administrative expenses by the sales revenue and then multiplying by 100. $(72,760 / 428,000) \times 100 = 17\%$.

Katz Group Had the Following Income Statement for the Month