QUESTION $37$

Two income statements for PS Enterprises are shown below:

PS Enterprises

Income Statement

For the Years Ended December $31,2014$ and $2013$

$2014$

$2013$

Fees earned

$$674,350$

$$520,600$

Operating expenses

$472,045$

$338,390$

Operating income

$$202,305$

$$182,210$

Prepare a vertical analysis of PS Enterprises$$ income statements. Has operating income increased or decreased as a percentage of revenue?

A$.$ Yes, increased by $5\%$

B$.$ Yes, increased by $111\%$

C$.$ No$,$ decreased by $5\%.$

D$.$ None are correct.