Use the following selected information from Allen Company to determine the Year 1 and Year 2 common size percentages for operating expenses using Net sales as the base.

	Year 2	Year 1
Net sales	$ 587,800	$ 474,600
Cost of goods sold	237,400	137,000
Operating expenses	86,590	83,450
Net earnings	43,780	31,030

Multiple Choice

• 40.4% for Year 2 and 28.9% for Year 1.

• 18.2% for Year 2 and 22.6% for Year 1.

• 14.7% for Year 2 and 17.6% for Year 1.

• 123.8% for Year 2 and 100.0% for Year 1.

• 25.7% for Year 2 and 11.3% for Year 1.