Fulton Company Has the Following Data Available If a Common Size Income Statement Were Prepared,what Percentage Would

question 70

Multiple Choice

Fulton Company has the following data available:
$\begin{array}{l}\text { Wage Expense, For the Year Ending December 31, 2X13} & \$95 \\\text { Wage Expense, For the Year Ending December 31,2 X 12}& \$90 \\\text { Sales, For the Year Ending December 31, 2X13}& \$900 \\\text { Sales, For the Year Ending December 31, 2X12}& \$800 \\\text { Net Income, For the Year Ending December 31, 2X13}& \$130 \\\text { Net Income, For the Year Ending December 31, 2X12}& \$ 110\\\end{array}$ If a common size income statement were prepared,what percentage would be attributable to the 2X13 wage expense of Fulton Company?

• A)10.6%
• B)11.2%
• C)46.2%
• D)58.1%
• E)81.8%

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Definitions:

Labour Hours

The total time worked by employees, typically used as a basis for labor cost allocation or productivity measurement.

Total Revenue Curve

A graphical representation that shows how total revenue changes with variations in the quantity of goods or services sold, illustrating the relationship between price and demand.

Quantity Sold

The total number of units of a product sold within a given time frame.

Predatory Pricing

A strategy where a business sets prices below cost intending to eliminate competitors and gain market dominance.