Arlington Company has prepared the following common-size income statement to compare its performance with industry averages:

	Arlington Co.	Industry
Revenues	100.0%	100.0%
Cost of goods sold	43.8%	39.7%
Gross Profit	56.2%	60.3%
Operating expenses:
Sales and marketing expense	18.1%	21.4%
General and administrative expense	12.0%	14.2%
Research and development expense	4.1%	4.0%
Total operating expenses	34.2%	39.6%
Income before income tax	22.0%	20.7%
Income tax expense	4.4%	4.2%
Net income (loss)	17.6%	16.5%

Based on the above data, an analyst could conclude that Arlington achieves better results than the industry average by controlling its operating expenses more effectively.

True or False?