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. Electronics Dawg Electronics Industry Company Average Sales $2,030,000 100 % Cost of goods sold (1,136,800) (59) Gross profit $893,200 41 % Selling expenses $(548, 100) (18) % Administrative expenses (203,000) (17) Total operating expenses $(751,100) (35) % Operating income $142,100 6% Other revenue and expense: Other revenue 40,600 4 Other expense (20,300) (3) Income before income tax $162,400 7 % Income tax expense (60,900) (5) Net income $101,500 2 % 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. Common-Sized Income Statement Dawg Electronics Dawg Electronics Company Amount Company Percent $2,030,000 100 % Electronics Industry Average Sales 100% Cost of goods sold (1,136,800) 56 % (59)% Gross profit $893,200 44 % 41% Selling expenses % (18)% $(548,100) (203,000) Administrative expenses % (17)% Total operating expenses $(751,100) % (35)% Operating income $142,100 % 6% Other revenue and expense: Other revenue 40,600 % 4% Other expense (20,300) % (3)% Income before income tax $162,400 % 7% Income tax expense (60,900) % (5)% Net income $101,500 % 2% b. Which of the following statements is true about Dawg Electronics Company? The cause of the higher selling expenses as a percent of sales, relative to the industry, should be investigated further