Keller 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 5

Multiple Choice

Keller 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:
$\begin{array}{ll}\text { Wage expense } & 160 \\\text { Depreciation expense } & 16 \\\text { Rent expense } & 106 \\\text { Miscellaneous expense } & \underline{10} \\\text { Total operating expenses } & \underline{292} \\\text { Operating income } & 464 \\\text { Income tax expense } & \underline{162} \\\text { Net income } & \$ 302\end{array}$
If Keller Company prepares a common size income statement,what will they report for Rent expense?

• A) 2.3%
• B) 4.3%
• C) 4.4%
• D) 6.8%

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Definitions:

Curvilinear Regression

A type of regression analysis used in statistics to model the complex relationship between a dependent variable and one or more independent variables when the relationship is not linear.

Independent Variable

A variable that is manipulated or controlled in an experiment to test its effect on a dependent variable, helping researchers understand cause-and-effect relationships.

Forecasting

The act of making educated guesses about future occurrences based on patterns, trends, and data analysis.

Curvilinear Relationship

A relationship between two variables where the change in one variable does not consistently result in a proportional change in the other, often depicted as a curved graph.