单选题

Income statements for two companies (A and B) and the common-size income statement for the industry are provided in the following table:

A、 both companies' tax rates are higher than the industry average.
B、 Company B's interest rate is lower than the industry average.
C、 Company A earns a higher gross margin than both Company B and the industry.

【正确答案】 C

【答案解析】

Common-sized analysis of the income statements shows that Company A has a lower percentage cost of goods sold and thus a higher gross margin than the industry and Company B.