Blanco, Inc. has the following income statement (in millions):

BLANCO, INC.

Income Statement

For the Year Ended December 31, 2010

Net Sales $200

Cost of Goods Sold 120

Gross Profit 80

Operating Expenses 44

Net Income $ 36

Using vertical analysis, what percentage is assigned to gross profit?

Select one:

a.

70%

b.

60%

c.

40%

d.

18%