Answer and analyze this question.

Analyze the common size income statements below for Coast Company:

(in percent)	2015	2014
Net sales	100	100
COGS	62	65
Gross margin	38	35
Research and development	9	5
Selling, general and administrative	11	17
Restructuring, asset impairments and other charges	1	8
Income/(loss) from operations	17	5
Interest expense	(3)	(1)
Income/(loss) before taxes	14	4
Provision for/(benefit from) income taxes	4	1
Net income/(loss)	10	3