Below are the income statements of Mabuhay and Paperless Publications for the current year:

Mabuhay Paperless

Net sales revenue Php 243,500 100.00% Php 250,000 100.00%

COGS 200,000 82.14% 197,500 79.00%

Gross Profit 43,500 17.86% 52,500 21.00%

Selling/Gen Expenses 15,000 6.16% 25,000 10.00%

Income from operations 28,500 11.70% 27,500 11.00%

Income tax expense 8,550 3.51% 8,250 3.30%

Net Income Php 19,950 8.19% Php 19,250 7.70%

Which firm has the better relationship between net income and net sales revenue?

Select one:

a. Cannot be determined

b. Mabuhay

c. Both have the same relationship

d. Paperless