Selected Financial Data for Barnstable Company Appear Below -For Year 2,what Was the Net Income Before Taxes as \text

Multiple Choice

Selected financial data for Barnstable Company appear below:
$\begin{array}{|l|r|r|}\hline & \text { Year 2 } & \text { Year 1 } \\\hline \text { Sales } & \text { (in thousands) } & \\\hline \text { Operating Expense } & \$ 1,500 & \$ 1,200 \\\hline \text { Interest Expense } & \$ 450 & \$ 400 \\\hline \text { Cost of Goods Sold } & \$ 75 & \$ 30 \\\hline \text { Dividends Declared and Paid } & \$ 900 & \$ 720 \\\hline\end{array}$

-For Year 2,what was the net income before taxes as a percentageof sales?

A) 3%.
B) 5%.
C) 8%.
D) 10%.