Company A has a cost of goods sold of $30,000 and a scrap cost of $5,000 while company B has a cost of goods sold of $60,000 and a scrap cost of $11,000, which reflects 2.5 tons of scrap. Company B can sell their scrap to Company C for use in the school cafeteria at 20 cents a pound. Which of these statements is true?

Company A has a scrap efficiency of 12.

Company B has a scrap efficiency of 5.

Company B has a higher scrap efficiency than company A.

Company A has a higher scrap efficiency that company B.

The two companies have identical scrap efficiencies