OAKBROOK COMPANY

Comparative Income Statements

For Years Ended December 31, 2017 and 2016

	2017		2016
Sales	$ 980		$ 850
Less cost of goods sold	525		415
Gross profit	455		435
Less operating expenses:
Wage expense	90		88
Depreciation expense	18		12
Rent expense	23		20
Miscellaneous expense	24		36
Total operating expenses	155		156
Operating income	300		279
Less other expenses:
Interest	9		33
Income before tax	291		246
Less income tax expense	116		98
Net income	$ 175		$ 148

Using common-size analysis, what percentage would be attributable to the 2017 wage expense of Oakbrook Company?

Select one:

A. 10.2 percent

B. 5.2 percent

C. 9.2 percent

D. 33.2 percent

OAKBROOK COMPANY

Comparative Income Statements

For Years Ended December 31, 2017 and 2016

	2017		2016
Sales	$ 980		$ 850
Less cost of goods sold	525		415
Gross profit	455		435
Less operating expenses:
Wage expense	90		88
Depreciation expense	18		12
Rent expense	23		20
Miscellaneous expense	24		36
Total operating expenses	155		156
Operating income	300		279
Less other expenses:
Interest	9		33
Income before tax	291		246
Less income tax expense	116		98
Net income	$ 175		$ 148

Using common-size analysis, what percentage would be attributable to the 2017 income tax expense of Oakbrook Company?

Select one:

A. 20.3 percent

B. 5.1 percent

C. 5.4 percent

D. 11.8 percent