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?

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%