Question

Scenario 2.02B
Jackson Company has Sales of $7,500
The company has the following expenses:
Advertising Expense - $1,300
Insurance Expense - $850
Rent Expense - $900
Supplies Expense - $250
Utility Expense - $125
In Scenario 2.02B, what is the component percentage for Total Expenses?

Answer 1

Answer:

45.67%

Explanation:

The component percentage for total expenses is shown below:

Component percentage = (Total expenses ÷ Sales revenue) × 100

where,

Total expenses equal to

= Advertising Expense + Insurance expense + rent expense + supplies expense + utility expense

= $1,300 + $850 + $900 + $250 + $125

= $3,425

And, the sales revenue is $7,500

So, the component percentage is

= ($3,425 ÷ $7,500) × 100

= 45.67%