Use the following informations to answer the questions

Consider the following income statement data for Barolo Inc.:

2020 2019

Sales revenue $97,300 $86,200

Less: Cost of goods sold 45,600 53,400

Gross profit 51,700 32,800

Less: Selling and administration costs 22,500 18,300

Net Income $29,200 $14,500

1. The percentage for selling and administration costs in 2020 was

a) 21.2%.

b) 23.1%.

c) 43.5%.

d) 77.0%.

e)None of the above

Answer:

2. Which of the following statements is correct?

a) The increase in sales revenue in 2020 was caused by higher selling and administrative expenses.

b) The company's cost to sales ratio improved in 2020.

c) The increase in gross profit in 2020 was due to increased sales.

d) Net income as a percent of sales declined in 2020.

e)None of the above