Chapter 12, Problem 6QC

Kincaid Company reported the following data (in millions) for the past two years:

	2019	2018
Net revenues........................................	$280	$250
Cost of goods sold...............................	$150	$140
Gross profit..........................................	$130	$110
Operating expenses..............................	$90	$75
Operating income................................	$40	$35

In a vertical analysis of 2019, the operating expenses percentage is closest to

• a. 225%.
• b. 69%.
• c. 14%.
• d. 32%.