The Arlington Company prepared a common-size income statement to compare its results with its key competitor,Bardo Company.Please refer to the following data:

\begin{array}{|l|r|r|} \hline& \text { Arlington Co. } &{\text { Bardo Co. }} \\\hline \text { Revenues } & 100.0 \% & 100.0 \% \\\hline \text { Cost of sales } & 42.1 \% & 47.8 \% \\\hline \text { Gross profit } & 57.9 \% & 52.2 \% \\\hline \text { Selling and general expenses: } & &\\\hline \text { Sales and marketing expense } & 26.3 \% & 8.6 \% \\\hline \text { General and administrative expense } & 12.0 \% & 10.8 \% \\\hline \text { Research and development expense } & 4.1 \% & 10.2 \% \\\hline \text { Total selling and general expenses } & 42.4 \% & 29.6 \% \\\hline & & \\\hline \text { Profit before tax } & 15.5 \% & 22.6 \% \\\hline \text { Income tax expense } & 3.3 \% & 5.8 \% \\\hline \text { Profit (loss) } & 12.2 \% & 16.8 \% \\\hline\end{array}

Which of the following statements can be correctly concluded from the above data?
A)Arlington's cost of sales is lower than Bardo's on a per unit basis.
B)Arlington makes less total profit than Bardo.
C)Arlington produces a higher amount of gross profit than Bardo.
D)Bardo has more effective cost control than Arlington in the area of selling and general expenses.

What Kind of Information Does the Dividend Payout Ratio Provide

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