2. Financial information is presented here for two companies.

		Yoste Company		Noone Company
Sales revenue		$90,000		$105,000
Sales returns and allowances		6,000		5,000
Net sales		84,000		100,000
Cost of goods sold		58,000		60,000
Gross profit		26,000		40,000
Operating expenses		14,380		23,000
Net income		11,620		17,000

		Yoste Company			Noone Company
Profit margin		13.8	%		17.0	%
Gross profit rate		31.0	%		40.0	%

(c) Discuss your findings based on profit margin and the gross profit rate given above.