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Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhills data are expressed in dollars. The electronics industry averages are expressed in percentages. Tannenhill Company Electronics Industry Average Sales $880,000 100 % Cost of goods sold 466,400 58 Gross profit $413,600 42 % Selling expenses $264,000 25 % Administrative expenses 96,800 11 Total operating expenses $360,800 36 % Operating income $52,800 6 % Other income 17,600 2 $70,400 8 % Other expense 8,800 1 Income before income tax $61,600 7 % Income tax expense 26,400 4 Net income $35,200 3 %

Common-Sized Income Statement Revenue and expense data for the current calendar year for Tannenhill Company and for the electronics industry are as follows. Tannenhill's data are expressed in dollars. The electronics industry averages are expressed in percentages. Electronics Tannenhill Industry Company Average Sales $880,000 100 % Cost of goods sold 466,400 58 Gross profit $413,600 42 % Selling expenses $264,000 25 % Administrative expenses 96,800 11 Total operating expenses $360,800 36 % Operating income $52,800 6 % Other income 17,600 2 $70,400 8 % Other expense 8,800 1 Income before income tax $61,600 7 % Income tax expense 26,400 4 Net income $35,200 3 % a. Prepare a common-sized income statement comparing the results of operations for Tannenhill Company with the industry average. If required, round percentages to one decimal place. Enter all amounts as positive numbers. Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Tannenhill Company Amount Tannenhill Company Percent $880,000 % 466,400 Electronics Industry Average 100.0% Sales Cost of goods sold yo 58% Gross profit $413,600 % 42% Selling expenses $264,000 % 25% Administrative expenses 96,800 % 11% Total operating expenses $360,800 % 36% Operating income % 6% $52,800 17,600 Other income % 2% $70,400 % 8% Other expense 8,800 % 1% % 7% Income before income tax $61,600 Income tax expense 26,400 % 4% Net income $35,200 % 3% b. The company is managing the cost of manufacturing product than the industry, and has slightly expenses relative to the industry. The combined impact causes net income as a percent of sales to be selling and administrative than the industry average

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