Year Ended December 31, 2010 2009 2008 Net sales Net sales of tangible products $855.269 $701,044 $871,587 Revenue from services and software 101.579 102,541 105,113 Total net sales 956.848 803.585 976.700 Cost of sales Cost of sales of tangible products 455,007 401.727 452.208 Cost of services and software 40.972 41.137 45,187 Total cost of sales 495,979 442.864 497.395 Gross profit Operating expenses: 460,869 360,721 479.305 Selling and marketing 122.689 102.535 126,325 Research and development 101,930 86,390 95.800 General and administrative 79,710 81.395 81,644 Amortization of intangible assets 9,573 10,466 18.575 Litigation settlement (1.082) (5.302) Exit, restructuring and integration costs 4,197 12,191 20.009 Asset impairment charges (1.058) 157,600 Total operating expenses 317,017 291,919 494,651 Operating income (loss) 143.852 68.802 (15.346) Other income (expense): Investment income 2.681 2.933 1.281 Foreign exchange gain (loss) (213) (45) 3.518 Other, net (1,385) (1.167) (1.366) Total other income 1.083 1,721 3.433 Income (loss) before income taxes 144,935 70.523 Income taxes 43,157 23,419 (11.913) 26.508 Net income (loss) $101,778 $47.104 $(38,421) Basic earnings (loss) per share $1.78 $0.79 $(0.60) Diluted carnings (loss) per share $1.77 $0.79 $(0.60) Basic weighted average shares outstanding 57.143 59,306 64.524 Diluted weighted average and equivalent shares outstanding 57,428 59,425 64.524 Required: Using the Consolidated Statements of Operations and the excerpts from the Zebra Technologies Corporation Form 10-K, analyze the profitability of Zebra. Your analysis should include the following calculations for all three years: (a) Common-size income statements. (b) Gross profit margins for tangible products and services and software. (c) Growth rates of total net sales and total operating expenses. (d) Effective tax rates. Your written analysis and interpretation should include explanations for why trends have occurred