Step1/5.gkwtCW{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;display:-webkit-box;display:-webkit-flex;display:-ms-flexbox;display:flex;-webkit-flex-direction:column;-ms-flex-direction:column;flex-direction:column;gap:16px;}/*!sc*/data-styled.g379[id="sc-z3f5s1-0"]{content:"gkwtCW,"}/*!sc*/.iIwMoS{white-space:pre-wrap;}/*!sc*/data-styled.g381[id="sc-1aslxm9-0"]{content:"iIwMoS,"}/*!sc*/.fzJtOB{text-align:start;}/*!sc*/data-styled.g383[id="sc-1aslxm9-2"]{content:"fzJtOB,"}/*!sc*/.dhyQUo{text-align:center;}/*!sc*/data-styled.g385[id="sc-1aslxm9-4"]{content:"dhyQUo,"}/*!sc*/.hOZehF{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;}/*!sc*/data-styled.g410[id="sc-9wsboo-0"]{content:"hOZehF,"}/*!sc*/.evjWEY{padding:0 1.5px;}/*!sc*/data-styled.g411[id="sc-9wsboo-1"]{content:"evjWEY,"}/*!sc*/.lhIoTe{margin:0;font-size:1rem;}/*!sc*/data-styled.g412[id="sc-1swtczx-0"]{content:"lhIoTe,"}/*!sc*/.gLPXBz{font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;font-size:0.75rem;margin:0;}/*!sc*/data-styled.g413[id="sc-b53hde-0"]{content:"gLPXBz,"}/*!sc*/.jyAGbC{max-width:100%;border-collapse:collapse;}/*!sc*/data-styled.g414[id="sc-b53hde-1"]{content:"jyAGbC,"}/*!sc*/.ioYafa{word-wrap:break-word;word-break:break-all;padding:3px 1px;min-width:25px;min-height:15px;}/*!sc*/.ioYafa > div{padding:0px 2px;}/*!sc*/data-styled.g415[id="sc-b53hde-2"]{content:"ioYafa,"}/*!sc*/.kajPzP{border:1px solid #ddd;}/*!sc*/data-styled.g417[id="sc-b53hde-4"]{content:"kajPzP,"}/*!sc*/.ikwPji{border:1px solid #ddd;}/*!sc*/data-styled.g418[id="sc-b53hde-5"]{content:"ikwPji,"}/*!sc*/.iHelzO{margin:0;font-family:"Aspira Webfont","Helvetica","Arial",sans-serif;line-height:normal;}/*!sc*/data-styled.g445[id="sc-1sugbjn-0"]{content:"iHelzO,"}/*!sc*/Step 1: Contribution Margin:Contribution margin is defined as the portion of revenue left with an entity after it has disbursed its variable charges (manufacturing and selling). A higher margin is preferred by the entities because it shows that the company is in a stronger position.Explanation:Please refer to solution in this step.Step2/5mjx-container[jax="CHTML"]{line-height: 0;}mjx-container [space="4"]{margin-left: .278em;}mjx-mtext{display: inline-block; text-align: left;}mjx-assistive-mml{position: absolute !important; top: 0px; left: 0px; clip: rect(1px, 1px, 1px, 1px); padding: 1px 0px 0px 0px !important; border: 0px !important; display: block !important; width: auto !important; overflow: hidden !important; -webkit-touch-callout: none; -webkit-user-select: none; -khtml-user-select: none; -moz-user-select: none; -ms-user-select: none; user-select: none;}mjx-math{display: inline-block; text-align: left; line-height: 0; text-indent: 0; font-style: normal; font-weight: normal; font-size: 100%; font-size-adjust: none; letter-spacing: normal; border-collapse: collapse; word-wrap: normal; word-spacing: normal; white-space: nowrap; direction: ltr; padding: 1px 0;}mjx-mi{display: inline-block; text-align: left;}mjx-c{display: inline-block;}mjx-mo{display: inline-block; text-align: left;}mjx-c::before{display: block; width: 0;}.MJX-TEX{font-family: MJXZERO, MJXTEX;}@font-face{font-family: MJXZERO; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Zero.woff") format("woff");}@font-face{font-family: MJXTEX; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Main-Regular.woff") format("woff");}mjx-c.mjx-c50::before{padding: 0.683em 0.681em 0 0; content: "P";}mjx-c.mjx-c72::before{padding: 0.442em 0.392em 0 0; content: "r";}mjx-c.mjx-c6F::before{padding: 0.448em 0.5em 0.01em 0; content: "o";}mjx-c.mjx-c66::before{padding: 0.705em 0.372em 0 0; content: "f";}mjx-c.mjx-c69::before{padding: 0.669em 0.278em 0 0; content: "i";}mjx-c.mjx-c74::before{padding: 0.615em 0.389em 0.01em 0; content: "t";}mjx-c.mjx-cA0::before{padding: 0 0.25em 0 0; content: "\A0";}mjx-c.mjx-c6D::before{padding: 0.442em 0.833em 0 0; content: "m";}mjx-c.mjx-c61::before{padding: 0.448em 0.5em 0.011em 0; content: "a";}mjx-c.mjx-c67::before{padding: 0.453em 0.5em 0.206em 0; content: "g";}mjx-c.mjx-c6E::before{padding: 0.442em 0.556em 0 0; content: "n";}mjx-c.mjx-c3D::before{padding: 0.583em 0.778em 0.082em 0; content: "=";}mjx-c.mjx-c4E::before{padding: 0.683em 0.75em 0 0; content: "N";}mjx-c.mjx-c65::before{padding: 0.448em 0.444em 0.011em 0; content: "e";}mjx-c.mjx-c63::before{padding: 0.448em 0.444em 0.011em 0; content: "c";}mjx-c.mjx-c2F::before{padding: 0.75em 0.5em 0.25em 0; content: "/";}mjx-c.mjx-c73::before{padding: 0.448em 0.394em 0.011em 0; content: "s";}mjx-c.mjx-c6C::before{padding: 0.694em 0.278em 0 0; content: "l";}Step 2: (1): Computation of the profit margin:Profit margin=Netincome /salesCompany ACompany BNet Income$10,943,200$525,300Sales$18,714,700$2,027,500Profit Margin58.50%25.90%The profit margin for Company A is higher.Explanation:Please refer to solution in this step.Step3/5mjx-container[jax="CHTML"]{line-height: 0;}mjx-container [space="3"]{margin-left: .222em;}mjx-container [space="4"]{margin-left: .278em;}mjx-mtext{display: inline-block; text-align: left;}mjx-assistive-mml{position: absolute !important; top: 0px; left: 0px; clip: rect(1px, 1px, 1px, 1px); padding: 1px 0px 0px 0px !important; border: 0px !important; display: block !important; width: auto !important; overflow: hidden !important; -webkit-touch-callout: none; -webkit-user-select: none; -khtml-user-select: none; -moz-user-select: none; -ms-user-select: none; user-select: none;}mjx-math{display: inline-block; text-align: left; line-height: 0; text-indent: 0; font-style: normal; font-weight: normal; font-size: 100%; font-size-adjust: none; letter-spacing: normal; border-collapse: collapse; word-wrap: normal; word-spacing: normal; white-space: nowrap; direction: ltr; padding: 1px 0;}mjx-mi{display: inline-block; text-align: left;}mjx-c{display: inline-block;}mjx-mo{display: inline-block; text-align: left;}mjx-c::before{display: block; width: 0;}.MJX-TEX{font-family: MJXZERO, MJXTEX;}@font-face{font-family: MJXZERO; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Zero.woff") format("woff");}@font-face{font-family: MJXTEX; src: url("https://cdn.jsdelivr.net/npm/mathjax@3/es5/output/chtml/fonts/woff-v2/MathJax_Main-Regular.woff") format("woff");}mjx-c.mjx-c4E::before{padding: 0.683em 0.75em 0 0; content: "N";}mjx-c.mjx-c65::before{padding: 0.448em 0.444em 0.011em 0; content: "e";}mjx-c.mjx-c74::before{padding: 0.615em 0.389em 0.01em 0; content: "t";}mjx-c.mjx-cA0::before{padding: 0 0.25em 0 0; content: "\A0";}mjx-c.mjx-c6D::before{padding: 0.442em 0.833em 0 0; content: "m";}mjx-c.mjx-c61::before{padding: 0.448em 0.5em 0.011em 0; content: "a";}mjx-c.mjx-c72::before{padding: 0.442em 0.392em 0 0; content: "r";}mjx-c.mjx-c6B::before{padding: 0.694em 0.528em 0 0; content: "k";}mjx-c.mjx-c69::before{padding: 0.669em 0.278em 0 0; content: "i";}mjx-c.mjx-c6E::before{padding: 0.442em 0.556em 0 0; content: "n";}mjx-c.mjx-c67::before{padding: 0.453em 0.5em 0.206em 0; content: "g";}mjx-c.mjx-c63::before{padding: ... See the full answer