Company a and Company B Sell Their Products for Exactly

Multiple Choice

Company A and Company B sell their products for exactly the same sales price.Both have the same annual total costs.Company A's variable and fixed costs at break-even total $60,000 and $30,000 respectively.Company B's variable and fixed costs at break-even total $30,000 and $60,000 respectively.Both companies have the same net income.If both companies experience an increase in sales, which company will have the higher net income?

A) Company A
B) Company B
C) Both companies will report the same profits since total costs are the same.
D) More information is needed to determine the answer.