-The Common Size Percentage for Selling and Administration Costs in Mandrake

question 97

Multiple Choice

$\begin{array}{l}\text { Consider the following statement of earnings data for Mandrake Mills Inc. }\\\begin{array} { | l | r | r | } \hline & \mathbf { 2 0X7 } & \mathbf { 2 0 X 6 } \\\hline \text { Sales revenue } & \$ 97,300 & \$ 86,200 \\\hline \text { Less: Cost of goods sold } & \underline { 45,600 } & \underline { 53,400 } \\\hline \text { Gross profit } & 51,700 & 32,800 \\\hline \text { Selling and administration expense } & \underline { 22,500 } & \underline { 18,300 } \\\hline \text { Income before income tax } & \$ 29,200 & \$ 14,500 \\\hline\end{array}\end{array}$
-The common size percentage for selling and administration costs in 20X7 was

• A) 43.5%
• B) 21.2%
• C) 23.1%
• D) 33%

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Definitions:

Property Tax

A levy imposed by a government on a property owner, based on the value of the property.

Mill Rate

The amount of property tax per $1000 value.

Average Number

A value found by adding all numbers in a set together and then dividing by the count of those numbers.

Staff Members

Individuals employed by an organization or a specific department within an organization.