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After creating the respective Income Statements, the company with the higher profitabiity rate has a rate of ____________
Company A
Raw materials: $500,000
Utilities: $25,000
Sales $900,000
Advertising: $25,000
Rent: $50,000
Payroll: $100,000
Company B
Payroll: $35,000
Advertising: $10,000
COGS: $150,000
Utilities: $4,000
Sales: $250,000
Transportation: $1,000
Problem 1: The company with the higher profitability rate has a rate of_
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