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Sandford Co. and Burkhart Co. are both general merchandise stores. Sanford Co. has $5,000 as net income and $150,000 in sales at the end of
Sandford Co. and Burkhart Co. are both general merchandise stores. Sanford Co. has $5,000 as net income and $150,000 in sales at the end of the year. Burkhart Co. has $8,000 in net income and $130,000 in sales. The benchmark for the industry is a 2.8 percent profit margin. Which one of the following is true? Select one: A. Burkhart Co. is more profitable than Sandford Co. B. Sandford Co. is more profitable than Burkhart Co. C. Neither company is close to being profitable. D. We cannot determine profitability without knowing the companies' total assets
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