Use the common-sized income statements, which compare Quiet Pints to the industryaverage, to identify unfavorable trends the company should work toward improving.

Quiet Pints Industry AverageSales

100% 100%Cost of goods sold 46.5% 42.6%Gross profit 53.5% 57.4%Selling expenses 10.7% 9.5%Administrative expenses 13.4% 12.8%Total operating expenses 24.1% 22.3%Income from operations 29.4% 35.1%Other income 2.6% 2.7%32.0% 37.8%Other expenses 1.1% 1.3%Income before income tax 30.9% 36.5%Income tax expense 10.8% 12.8%