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Question

Apply common size analysis to ABC Company's selling expenses given the following information: Selling expenses = Rs. 60,000; Revenue from Operations = Rs. 2,50,000; Total assets = Rs. 4,25,000; Total liabilities = Rs. 3,00,000.


A

50%

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B

25%

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C

24%

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D

36%

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Solution

The correct option is C

24%


Selling Expenses
= (60,000 / 2,50,000) * 100 = 24% of Revenue from Operations


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