A condensed income statement for Southwest Airlines and a partially completed vertical analysis are presented below.

Required:
1. Complete the vertical analysis by computing each line item (a)-(f) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does the percentage that you calculated in 1(a) suggest that Southwest tried to increase its profit by cutting repairs and maintenance costs in 2010 compared to 2009?
3. Refer to the percentages that you calculated in 1(c) and (f). Is Southwest's net profit margin improving or declining?

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SOUTHWEST AIRLINES Income Statement (summarized) For the Year Ended December 31 (in millions of U.S. dollars) 2010 2009 $12,104 3,704 3,620 3,792 243 745 286 459 $10,350 3,468 3,044 3,576 98 164 65 100% 31 100% Sales Revenues Salaries, Wages, and Benefits Fuel, Oil, Repairs, and Maintenance Other Operating Expenses Other Expenses (Revenues) Income before Income Tax Expense Income Tax Expense Net Income 29 35