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

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Accounting

he 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 (400)(600)
Gross Margin 6001,400
Operating Expenses (220)(800)
Operating Income 380600
Gain on the Sale of Equipment 3500
Net Income $ 630 $ 600
Assume both companies receive a $3,000 increase in sales and the return-on-sales ratio does not change. Under these circumstances
Multiple Choice
Company A's operating income would increase by $1,140.
Company B's operating income would increase by $600.
Both answers are correct.
Neither answer is correct.
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