Income statements for two companies (A and B) and the income statement for the industry are provided in the following table: ($ thousands) Sales Cost of goods sold Selling, general, and administrative expenses Interest expense Pretax earnings Taxes Net earnings Company A $10,500 6,353 2,625 840 683 205 $478 Company B $8,250 5,239 2,021 536 454 145 $309 Industry 100.0% 62.8% 24.8% 7.0% 5.4% 1.7% 3.7% State your analysis based on the above information, which company is more competitive in the industry? Why?

Income statements for two companies (A and B) and the income statement for the industry are provided in the following table: ($ thousands) Sales Cost of goods sold Selling, general, and administrative expenses Interest expense Pretax earnings Taxes Net earnings Company A $10,500 6,353 2,625 840 683 205 $478 Company B $8,250 5,239 2,021 536 454 145 $309 Industry 100.0% 62.8% 24.8% 7.0% 5.4% 1.7% 3.7% State your analysis based on the above information, which company is more competitive in the industry? Why?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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