The 2016 income statements for the Alpha Company and the Omega Company appear below: Alpha...
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The 2016 income statements for the Alpha Company and the Omega Company appear below: Alpha Company Omega Company Net Sales $1,050,000 $ 260,000 Cost of Goods Sold 475,000 107,500 Operating expense 367,500 73,000 Required: 1. What is the gross margin percentage for each company? 2. What is the net income percentage for each company? 3. Briefly comment on the pricing policies of each company as well as the ability to control expenses. Disregarding the difference in size, which company appears to be doing a better job?
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