Express the following comparative income statements in common-size percents. Using the common-size percentages, which item is most responsible for the decline in net income?
Income Statement Reason for
Decline in Net Income
GOMEZ CORPORATION
Comparative Income Statements
For Years Ended December 31
Current Year Prior Year %
Sales 770,000 $635,000
Cost of goods sold 568,100 284,400
Gross profit 201,900 350,600
Operating expenses 129,200 262,400
Net income 72,700 88,200
Using the common-size percentages, which item is most responsible for the decline in net income?

Kubin company’s relevant range of production is 18,000 to 22,000 units. when it produces and sells 20,000 units, its average costs per unit are as follows: average cost per unit direct materials $ 7.00 direct labor $ 4.00 variable manufacturing overhead $ 1.50 fixed manufacturing overhead $ 5.00 fixed selling expense $ 3.50 fixed administrative expense $ 2.50 sales commissions $ 1.00 variable administrative expense $ 0.50 required: 1. for financial accounting purposes, what is the total amount of product costs incurred to make 20,000 units? 2. for financial accounting purposes, what is the total amount of period costs incurred to sell 20,000 units? 3. for financial accounting purposes, what is the total amount of product costs incurred to make 22,000 units? 4. for financial accounting purposes, what is the total amount of period costs incurred to sell 18,000 units?