Provide your evaluation based on the common-size income statements: (Select all the choices that apply.) A. Operating expenses have decreased as a percentage of sales; this appears favorable unless this decline has contributed toward the fall in sales. B. The level of interest as a percentage of sales has increased significantly; this suggests that the firm has too much debt. C. Sales have declined and cost of goods sold has increased as a percentage of sales, probably due to a loss of productive efficiency. D. Selling expense has increased due to the increase in cost of goods sold. E. Further analysis should be directed at the increased cost of goods sold and the high debt level.

1. alwaysrain irrigation, inc. would like to determine capacity requirements for the next four years. currently, two production lines are in place for making bronze and plastic sprinklers. three types of sprinklers are available in both bronze and plastic: 90-degree nozzle sprinklers, 180-degree nozzle sprinklers, and 360-degree nozzle sprinklers. management has forecast demand for the next four years as follows: both production lines can produce all the different types of nozzles. the bronze machines needed for the bronze sprinklers require two operators and can produce up to 12,000 sprinklers. the plastic injection molding machine needed for the plastic sprinklers requires four operators and can produce up to 200,000 sprinklers. three bronze machines and only one injection molding machine are available. what are the capacity requirements for the next four years? (assume that there is no learning.)