Two firms, Green and Red, from the same industry reported the
following income statements.
Green, Inc.
2018
2019
Sales
$110,000
$150,000
–COGS and Other Variable Operating Costs
- 77,000
- 105,000
–Fixed Operating Costs
- 15,000
- 15,000
EBIT
18,000
30,000
–Interest
- 0
- 0
EBT
18,000
30,000
–Taxes
- 5,400
- 9,000
Net Income
$ 12,600
$ 21,000
Red, Inc.
2018
2019
Sales
$110,000
$150,000
–COGS and Other Variable Operating Costs
- 66,000
- 90,000
-Fixed Operating Costs...