The data show that Freedom Rock Bicycles has gross margins comparable to or slightly above the industry but significantly lower operating margins. This indicates that the problem is not production efficiency or cost of goods sold, but rather operating expenses such as selling, general, and administrative costs or fixed overhead. Additionally, asset turnover is roughly in line with industry averages, suggesting that asset utilization is not the primary issue. From a financial management perspective, when gross margin is healthy but operating margin lags, the logical focus is on controlling non-production costs and evaluating fixed cost structures. Reducing unnecessary overhead, improving operating efficiency, or restructuring fixed expenses can directly improve operating margin and overall profitability. Option C best reflects this targeted, ratio-driven recommendation. The other options either misdiagnose the problem or focus on areas already performing adequately relative to peers.