Net sales 900,000 Cost of goods sold 540,000 Gross Profit 360,000 Marketing 90,000 General and administrative 250,000 Depreciation 40,000 EBIT -20,000 Interest 45,000 Earning before taxes -65,000 Income taxes 0 Net income(loss) -65,000 This is for 2007
this is for 2008

Net sales 1,500,000 Cost of goods sold 900,000 Gross Profit 600,000 Marketing 150,000 General and administrative 250,000 Depreciation 40,000 EBIT 160,000 Interest 60,000 Earnings before taxes 100,000 Income taxes 25,000 Net Income 75,000

Determine which cost or expense items varied directly with sales for the two year period. Also find out each instatement item for 2007 as a percent of 2007 sales level and 2008.