Below are the income statements of Rafio and Dionne Publications companies for the current year:

Rafio Dionne

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 percentage-wise between selling and general expenses

compared to net sales revenue?

Select one:

a. Rafio

b. Cannot be determined

c. Dionne

d. Both have the same relationship