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Below Is a Comparative Income Statement for Melissa Company: Melissa

question 82

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Below is a comparative income statement for Melissa Company: Melissa Company
Income Statement
For the Years Ended December 31,20X6 and 20X5
20X620X5 Sales $1,744$1,562 Less: Cost of goods sold 992806 Gross profit $752$756 Less operating expenses:  Wage expense $172$160 Depreciation expense 2826 Rent expense 3636 Miscellaneous expense 4070 Total operating expenses $276$292 Operating income $476$464 Less other expenses:  Interest 2060 Income before tax $456$404 Less: Income tax expense 182162 Net income $274$242\begin{array}{lrr}&20X6&20X5\\\text { Sales } & \$ 1,744 & \$ 1,562 \\\text { Less: Cost of goods sold } & 992 & 806 \\\text { Gross profit } & \$ 752 & \$ 756 \\\text { Less operating expenses: }\\\text { Wage expense } & \$ 172 & \$ 160 \\\text { Depreciation expense } & 28 & 26 \\\text { Rent expense } & 36 & 36 \\\text { Miscellaneous expense } & 40 & 70 \\\text { Total operating expenses } & \$ 276 & \$ 292\\\text { Operating income } & \$ 476 & \$ 464 \\\text { Less other expenses: } & & \\\quad \text { Interest } & 20 & 60\\\text { Income before tax } & \$ 456 & \$ 404 \\\text { Less: Income tax expense } & 182 & 162 \\\text { Net income } & \$ 274 & \$ 242\end{array} If a common-size income statement were prepared, _____ would be attributable to the 20X5 wage expense of Melissa Company.

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Definitions:

Dependent Variable

The variable in an experiment that is measured or observed to assess the effect of the independent variable.

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Dependent Variable

The variable in an experiment that is expected to change or respond as a result of manipulations of the independent variable.

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