Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company A and company B both operate in the car industry. Based on the table below, which company has a higher net profit margin? Sales
Company A and company B both operate in the car industry. Based on the table below, which company has a higher net profit margin? Sales (in millions of $) Net income (in millions of $) Company A Company B 1000 5000 200 250 Cost of goods sold (COGS) (in millions of $) 400 2750 Selling, general, and administrative (SG&A) expenses (in 250 500 millions of $) R&D expenses (in millions of $) 100 150 Net return on sales 20% 5% COGS/Sales 40% 55% Marketing intensity (SG&A expenses/Sales) 25% 10% R&D intensity (R&D expenses/Sales) 10% 3% OA O B
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started