Linden Corp. has a 10% market share in its industry. Below are income statements ($M) for Linden and for the industry.

	Linden		Industry
Sales	$6,000		$62,000
Cost of Goods Sold	3,400		30,155
Gross Margin	2,600		31,845
Expenses:
Sales and Marketing	430		3,850
Engineering	225		2,650
Finance and Administration	650		4,560
Total Expenses	1,305		11,060
EBIT	1,295		20,785
Interest Expense	230		4,500
EBT	1,065		16,285
Tax	500		5,620
Net Income	565		10,665

1. Develop common sized income statements for Linden and the industry as a whole. Round the answers to 2 decimal places.

   	Linden	%	Industry	%
   Sales	$6,000		$62,000
   Cost of Goods Sold	3,400		30,155
   Gross Margin	2,600		31,845
   Expenses:
   Sales and Marketing	430		3,850
   Engineering	225		2,650
   Finance and Administration	650		4,560
   Total Expenses	1,305		11,060
   EBIT	1,295		20,785
   Interest Expense	230		4,500
   EBT	1,065		16,285
   Tax	500		5,620
   Net Income	565		10,665

2. What areas should management focus on to improve performance, and what kind of issues should be examined or looked for in each area? The input in the box below will not be graded, but may be reviewed and considered by your instructor.