The CFO of James Jeans Co. has asked you to prepare a vertical analysis of the recent year's financial statements. You have identified the following: Gross profit as a percentage of net sales increased from 30.2% last year to 35% this year, net income increased from 9.4% to 10% of net sales, and James Jeans' closest competitor had net income this year at 11.8% of sales. What would you propose as an explanation for these results? O James Jeans is doing a better job running their business and improving profitability than its closest competitor. O James Jeans is an overall profitable business and has improved its profitability; however, the company is still less profitable than its closest competitor. O James Jeans was successful in growing the business and bottom line and should be able to overtake its closest competitor to become more profitable. O James Jeans has done a successful job negotiating raw materials prices and compensating the sales team to improve financial results, but, their competitor may be do