Maureen Company Has the Following Income Statement for the Year $\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array}$

question 104

Multiple Choice

Maureen Company has the following income statement for the year ending December 31,2016:
$\begin{array}{ll}\text { Sales } & \$ 1,562 \\\text { Cost of goods sold } & {806} \\\text { Gross profit } &{756}\end{array}$
Operating expenses:
$\begin{array}{ll}\text { Wage expense } & 110 \\\text { Depreciation expense } & 76 \\\text { Rent expense } & 36 \\\text { Miscellaneous expense } & \underline{70} \\\text { Total operating expenses } & \underline{292} \\\text { Operating income } & 464 \\\text { Income tax expense } & \underline{162} \\\text { Net income } & \$ 302\end{array}$
If Maureen Company prepares a common size income statement,what will they report for Wage expense?

• A) 7.0%
• B) 10.2%
• C) 34.4%
• D) 66.1%

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Definitions:

Gun Makers

Companies or individuals involved in the manufacturing of firearms.

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The economic system of the United States, characterized by a mixed economy with private freedom combined with centralized economic planning and government regulation.

Maximum Possible Output

The highest amount of goods or services an economy can produce when it is utilizing all of its resources efficiently.

Economic Growth

An increase in the production of goods and services over a specific period, often measured by GDP.