the following selected information from Allen Company to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base.
Year 2 Year 1
Net sales $ 587,800 $ 474,600
Cost of goods sold 237,400 137,000
Operating expenses 86,590 83,450
Net earnings 43,780 31,030
Multiple Choice
40.4% for Year 2 and 28.9% for Year 1.
18.2% for Year 2 and 22.6% for Year 1.
14.7% for Year 2 and 17.6% for Year 1.
123.8% for Year 2 and 100.0% for Year 1.
25.7% for Year 2 and 11.3% for Year 1.