Answer:
The component percentage for net income is 48%
Explanation:
For computing the percentage of net income, first, we have to compute the net income which is shown below:
= Gross profit - expenses incurred
= $175,000 - $55,000
= $120,000
The net income is $120,000 and the sales revenue is $250,000, so the net income component percentage would be
= (Net income ÷ Sales revenue) × 100
= ($120,000 ÷$250,000) × 100
= 48%
Hence, the component percentage for net income is 48%
