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The following information was drawn from the annual reports of two companies. Company A Company B Sales revenue $ 1,000 $ 2,000 Cost of goods

The following information was drawn from the annual reports of two companies.

Company A Company B Sales revenue $ 1,000 $ 2,000 Cost of goods sold (600) (1,100) Gross margin 400 900 Operating expenses (220) (700) Operating income 180 200 Gain on sale of equipment 150 0 Net income $ 330 $ 200

Based on this information, Company Bs return on sales is

55%. 45%. 35%. 10%.

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