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06. There are two companies, A and B, which have facilities to produce the same...

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Accounting

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06. There are two companies, A and B, which have facilities to produce the same products. A's operating income is 15% and B's operating income is 25%. In general, company B can be considered a profitable company with higher internal efficiency. But if actual B is not better at internal competencies, explain how the above operating profit could have been achieved. (Hint: B may have been using the equipment for a longer period of time.)

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