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The following information was drawn from the annual reports of two companies. Sales revenue Cost of Goods Sold Gross Margin Operating Expenses Operating Income Gain

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The following information was drawn from the annual reports of two companies. Sales revenue Cost of Goods Sold Gross Margin Operating Expenses Operating Income Gain on the sale of equipment Net Income Company A $1,000 (600) 400 (220) 180 150 330 Company B $ 2,000 (1,100) 900 (700) 200 e 200 Assume both companies receive a $1,000 increase in sales and the return on sales ratio does not

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