Use the Following Information for Questions:
Consider the Following Income

Multiple Choice

Use the following information for questions:
Consider the following income statement data for Milan Inc.: $\begin{array} { l }&2011&2010\\ \text {Sales revenue }&\$97,000&\$86,200\\ \text { Less: Cost of goods sold}&45,600&53,400\\ \text {Gross profit }&51,700&32,800\\ \text { Less: Selling and administration costs Income before }&22,500&18,300\\ \text {income tax }&29,200&14,500\\\end{array}$

-Based on common size analysis, which of the following statements is correct?

A) The increase in sales revenue in 2011 was caused by higher selling and administrative expenses.
B) The company's cost to sales ratio improved in 2011.
C) The increase in gross profit in 2011 was due to increased sales.
D) Net income as a percent of sales declined in 2011.