The following is a common sized Income Statement for Sydney

The following is a common -sized Income Statement for Sydney and Caesar Companies (in thousands) Sydney % Caesar 90 Net Sales Cost of Goods Sold Gross Profit Operating Expenses Selling, General and Adm. Other Income Before Income Tax Income Tax Expense Net Income 100.0% 39.2% 15.3% 100.0% 4.6% 35.4% 15.4% 18.7% 7% 16.0% 224 % 1% 19.3% O A. Not enough information is given to assess the question. O B. Caesar Company O C. Sydney Company O D. Too close to make a solid determination.

Solution

Dear I m giving answer to the question based on information provided but I think some more information is needed as which area industry is working and what we have to found etc..

Based on information

1) Ceasar company is found more efficient and cost effective as on the same sale it is able to earn more margin than Sydney

So option B is found correct in this case

2) Ceasar company have less cost of good sold than sydeny which saws that it is able toto control it\'s material and manufacturing cost etc in effective manner than Sydney

3) However it have more operating expenses than sydemy which saws that it is more expending in selling expense and such related expenses than sydeny..

4) So ultimately it have more profit margin than sydemy company..