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| Company | A | | B | | C | | D |
| Sales | $ | 80,000 | | | $ | 180,000 | | | $ | 120,000 | | | $ | 100,000 | |
| Cost of goods sold | | 48,000 | | | | 135,000 | | | | 72,000 | | | | 60,000 | |
| Gross margin | | 32,000 | | | | 45,000 | | | | 48,000 | | | | 40,000 | |
| Operating expenses | | 9,600 | | | | 12,600 | | | | 10,800 | | | | 10,000 | |
| Net income | $ | 22,400 | | | $ | 32,400 | | | $ | 37,200 | | | $ | 30,000 | |
| |
Based on common-sized income statements, which of the companies spent the least on operating expenses in relationship to its sales?
Multiple Choice
A Company A
B Company B
C Company C
D Company D
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