Common-size percentages are often used to compare the statements of companies of unequal size. The condensed income statements of Companies A and B are given below.

Enter in the spaces provided the amounts expressed in common-size percentages.

Company A and Company B Income Statements for Year Ended December 31, 2007 Dollar Amounts Common-Size Percentages Company A Company B Company A Company B Sales $450,000 $525,000 Cost of goods sold 261,000 210,000 Gross margin $189,000 $315,000 Selling expenses $81,000 $89,250 Administrative expenses 45,000 52,500 Total operating expenses $126,000 $141,750 Income $63,000 $173,250 After expressing the amounts of the income statements in common-size percentages, examine them and name the company that operated more efficiently.