1. Manero Company included the following information in its annual report:

	20X3				20X2				20X1
Sales	$	178,400			$	162,500			$	155,500
Cost of goods sold		115,000				102,500				100,000
Operating expenses		50,000				50,000				45,000
Operating income		13,400				10,000				10,500

In a common size income statement for 2021, the COGS is expressed as:

1. 40%

2. 64.3%

3. 230%

4. 100%