Tannenhill Tannenhill Company Common-Sized Income Statement For the Year Ended December 31 Electronics Industry Company Amount Percent Average Sales $2,170,000 100 % 100.0% Cost of merchandise sold 1,171,800 53 X% 59% Gross profit $998,200 % 41% Selling expenses $629,300 % 25% Administrative expenses 238,700 % 10% Total operating expenses $868,000 % 35% Income from operations $130,200 % 6% Other revenue and expense: Other revenue 43,400 2% Other expense (21,700) % 1% Income before income tax $151,900 % 7% Income tax expense 65,100 % 5% $86,800 % 2% Net income