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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

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