Lowden Point Company has these common-size income statements for Year 1 and Year 2:

Year 1 Year 2

Sales 100% 100%

Cost of Goods Sold 68% 60%

Wage Expense 13% 21%

Rent Expense 4% 4%

Advertising Expense 2% 2%

Net Income 13% 13%

Which ONE of the following statements is true?

• In Year 2, Rent Expense is a problem.
• In Year 2, Cost of Goods Sold is a problem.
• In Year 2, Wage Expense is a problem.
• In Year 2, Advertising Expense is a problem.