Company A has the following information from its
financial statements:
Year 2 Year 1
Revenue 100,000 40,000
COGS 75,000 30,000
Other Expenses 10,000 6,000
Net Income 15,000 4,000
Which of the following statements is correct?
COGS is a fixed cost.
Return on Sales ratio increased.
Return on Sales ratio is constant.
Other expenses is variable costs.