The following are income statements of two companies that are both in the fast food industry. All amounts are in $000\text{'}$s and are for the year ended December $31,2021.$

Company A Company B

$($public company$)($private company$)$

Revenue $ $100,000$ $ $6,000$

Cost of goods sold $35,0002,080$

Gross profit $65,0003,920$

Expenses

Labour expenses $15,000905$

Utilities expenses $1,950140$

Other operating expenses $33,0001,970$

Total operating expenses $49,9503,015$

Profit from operations $15,050905$

Interest expense $2,100475$

Income tax expense $4,40021$

Profit $ $8,550$ $ $409$

Instructions

Using vertical analysis determine which corporation is the more profitable and identify the most significant cause of the difference.