Reference no: EM132972542

Below are the income statements of Rafio and Dionne Publications companies for the current year:

                                                     Rafio                                        Dionne

Net sales revenue          Php 243,500 100.00%         Php 250,000 100.00%

COGS                           200,000 82.14%                     197,500 79.00%

Gross Profit                     43,500 17.86%                       52,500 21.00%

Selling/Gen Expenses          15,000 6.16%                        25,000 10.00%

Income from operations         28,500 11.70%                      27,500 11.00%

Income tax expense              8,550 3.51%                             8,250 3.30%

Net Income                        Php 19,950 8.19%                   Php 19,250 7.70%

Problem 1: Which firm has the better relationship percentage-wise between selling and general expenses compared to net sales revenue?

Select one:

a. Rafio

b. Cannot be determined

c. Dionne

d. Both have the same relationship