Answer: C.) 8%
Explanation:
Given the following :
Sales $600,000
Cost of goods sold 400,000
Selling expenses 50,000
Net income 36,000
what percentage would appear for selling expenses in a vertical analysis?
Each income statement item is expressed as a percentage proportion of total sales.
(Income statement item ÷ Total sales) * 100
(selling expenses ÷ total sales) * 100
(50,000 ÷ 600,000) × 100
0.08333 × 100 = 8.33%
= 8%
