Answer:
Explanation: 1. Calculate the net profit: Multiply the sales by the profit margin.
Net profit = $529,000 * 0.034 (3.4%)
2. Calculate the retained earnings: Multiply the net profit by the retention ratio.
Retained earnings = Net profit * 0.60 (60%)
3. Calculate the dividends paid: Subtract the retained earnings from the net profit.
Dividends paid = Net profit - Retained earnings
4. Calculate the common-size percentage: Divide the dividends paid by the sales and multiply by 100.
Common-size percentage = (Dividends paid / Sales) * 100
By following these steps, you can calculate the common-size percentage for the dividends paid based on the given information.