A condensed income statement for Northwest Airlines and a partially completed vertical analysis are presented below.

Required
1. Complete the vertical analysis by computing each line item from (a) through (f) as a percentage of sales revenues. Round to the nearest whole percentage.
2. Does the percentage that you calculated in requirement 1(a) suggest that Northwest tried to increase its profit by cutting repairs and maintenance costs in 2012 compared to 2011?
3. Refer to the percentages that you calculated in requirements 1(c) and 1(f). Is Northwest's net profit margin improving or declining?

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NORTHWEST AIRLINES Income Statement (summarized) For the Year Ended December 31 (in millions of dollars) 2011 2012 Sales Revenues $12,104 $10,350 100% 100% Salaries, Wages, and Benefits Fuel, Oil, Repairs, and Maintenance Other Operating Expenses Other Expenses (Revenues) Income before Income Tax Expense (d) 3,704 31 3,468 3,620 (a) (b) 3,044 29 3,792 3,576 35 243 98 (e) 745 164 Income Tax Expense 286 65 (c)% _(f)% Net Income 459 99