a) Vertical Analysis
	2022	%	2021	%
Revenue	$850,000		$750,000
Cost of goods sold	340,000		300,000
Gross profit	510,000		450,000
Expenses
Salaries	221,000		165,000
Amortization expense	37,500		37,500
Other operating expenses	161,500		142,500
Total operating expenses	420,000		345,000
Income from operations	90,000		105,000
Interest expense	-15,000		-15,000
Income tax expense	-22,500		-27,000
Net income	$52,500		$63,000
b) Explanation