Revenue and expense data for the current calendar year for Dawg Electronics Company and for the electronics industry are as follows. Dawg Electronics Company data are expressed in dollars. The electronics industry averages are expressed in percentages.

a. Prepare a common-sized income statement comparing the results of operations for Dawg Electronics Company with the industry average. If required, round percentages to one decimal place. Dawg Electronics Company Common-Sized Income Statement Dawg Electronics Dawg Electronics Dawg Electronics Electronics Industry Company Amount Company Percent Average $1,210,000 % 100% (810,700) % Sales (72)% Cost of goods sold Gross profit Selling expenses $399,300 % 28% % (11)% $(229,900) (84,700) Administrative expenses % (11)% 5(314,600) % (22)% $84,700 % 6% Total operating expenses Operating income Other revenue and expense: Other revenue 24,200 % 4% (12,100) % (3)% Other expense Income before income tax Income tax expense $96,800 % 7% (36,300) % (4)% Net income $60,500 % 3% 3 b. Which of the following statements is true about Dawg Electronics Company