The Following Chart Shows Some Figures from an Income Statement

question 2

Multiple Choice

The following chart shows some figures from an income statement. Prepare a vertical analysis by expressing each item as a percent of net sales. Round percents to the nearest tenth of a percent.
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• A)65.5%, 11.3%, 5.6%, 15.5%
• B)65.5%, 17.2%, 8.5%, 23.6%
• C)65.5%, 11.5%, 8.5%, 23.6%
• D)65.5%, 11.3%, 49.2%, 15.5%

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Definitions:

Operating Income

Earnings before interest and taxes, representing a company's profit from its core business operations.

Direct Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected amount, multiplied by the standard cost per unit.

Data Collected

Information gathered for analysis or used to make decisions, often through observations, experiments, or measurements.

Variable Costs

Costs that vary directly with the level of production or output, such as materials and direct labor costs.