ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Income statements for two companies (A and B) and the income statement for the industry are
provided in the following table:
(S 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?
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Transcribed Image Text:Income statements for two companies (A and B) and the income statement for the industry are provided in the following table: (S 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?
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