The Arlington Company Prepared a Common-Size Income Statement to Compare

The Arlington Company prepared a common-size income statement to compare its results with its key competitor, Bardo Company. Please refer to the following data:
$$\begin{array} { | l | r | r | } \hline & \text { Arlington Co. } &{ \text { Bardo Co. } } \\\hline \text { Revenues } & 100.0 \% & 100.0 \% \\\hline \text { Cost of goods sold } & 42.1 \% & 47.8 \% \\\hline \text { Gross Profit } & 57.9 \% & 52.2 \% \\\hline \text { Operating expenses: } & & \\\hline \text { Sales and marketing expense } & 26.3 \% & 8.6 \% \\\hline \text { General and administrative expense } & 12.0 \% & 10.8 \% \\\hline \text { Research and development expense } & 4.1 \% & 10.2 \% \\\hline \text { Total operating expenses } & 42.4 \% & 29.6 \% \\\hline & & \\\hline \text { Income before income tax } & 15.5 \% & 22.6 \% \\\hline \text { Income tax expense } & 3.3 \% & 5.8 \% \\\hline \text { Net income(loss) } & 12.3 \% & 16.8 \% \\\hline\end{array}$$
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Based on this data, an analyst could conclude that Arlington's performance is not as good as Bardo's because it has much higher sales and marketing expenses.

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