Use the Following Selected Information from Farris, LLC to Determine

question 109

Multiple Choice

Use the following selected information from Farris, LLC to determine the Year 2 and Year 1 common size percents for operating expenses using Year 1 net sales as the base.

• A) 36.4% for Year 2 and 41.1% for Year 1.
• B) 55.0% for Year 2 and 56.0% for Year 1.
• C) 119.4% for Year 2 and 100.0% for Year 1.
• D) 103.8% for Year 2 and 100.0% for Year 1.
• E) 20.0% for Year 2 and 23.0% for Year 1.

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Definitions:

Confidential Information

Sensitive data or details that are restricted to certain individuals to protect privacy or competitive advantage.

Marginal Utility

The change in utility an individual gains from consuming an additional unit of a good or service.

Rate Of Substitution

The rate at which a consumer can replace one good with another while maintaining the same level of utility.

Tee Shirts

A type of clothing characterized by short sleeves and a round neckline without a collar, commonly made of cotton or polyester.