The Following Is a Summary of Information Presented on the Income

The following is a summary of information presented on the income statements of Haley Publications and Johnston Publications for December 31, 2007.
$$\begin{array} { | l | r | r | r | r | } \hline & \begin{array} { r } \text { Haley } \\\text { Publications }\end{array} & & \begin{array} { r } \text { Johnston } \\\text { Publications }\end{array} & \\\hline \text { Account } & 2007 & \% & 2007 & \% \\\hline \text { Net sales revenue } & \$ 487,000 & 100.00 \% & \$ 500,000 & 100.00 \% \\\hline \text { Cost of goods sold } & 400,000 & 82.14 \% & \underline { 395,000 } & 79.00 \% \\\hline \text { Gross profit } & 87,000 & 17.86 \% & 105,000 & 21.00 \% \\\hline \text { Selling and general expenses } & 30,000 & 6.16 \% & \underline { 50,000 } & 10.00 \% \\\hline \text { Income from operations } & 57,000 & 11.70 \% & 55,000 & 11.00 \% \\\hline \text { Income tax expense } & 17,100 & 3.51 \% & \underline { 16,500 } & 3.30 \% \\\hline \text { Net income } & \$ 39,900 & 8.19 \% & \underline { \$ 38,500 } & 7.70 \% \\\hline\end{array}$$ Based on the information presented, what steps should Johnston take to improve its performance to match or exceed Haley's performance?

A) Johnston should reduce its cost of goods sold as a percentage of net sales revenue.
B) Johnston should reduce its income tax expense as a percentage of net sales revenue.
C) Johnston should reduce its selling and general expenses as a percentage of net sales revenue.
D) All of these actions would improve Johnston's performance.