NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

Table 5 • 2008 Common-Sized (Average) Income Statement, Percentage of Total Sales—By Sales VolumeUnder $2.5M $2.5M to $3.5M $3.5M to $6.5M Over $6.5MSalesPrescription sales 92.8% 93.9% 93.1% 93.4%All other sales 7.2% 6.1% 6.9% 6.6%Total Sales 100% 100% 100% 100%Cost of Goods SoldPrescriptions costs 73% 72.1% 72.5% 71.6%All other costs 4.9% 3.8% 4.4% 5.3%Total Cost of Goods Sold 77.9% 75.9% 76.9% 76.9%Gross Profit 22.1% 24.1% 23.1% 23.1%Operating ExpensesPayroll expensesSalaries, wages 11.2% 12% 11.6% 12.9%Payroll taxes, workers’ comp, employee benefits 1.6% 1.8% 1.8% 1.9%Payroll Expenses 12.8% 13.8% 13.4% 14.8%Other Operating ExpensesAdvertising 0.5% 0.4% 0.5% 0.5%Insurance 0.5% 0.3% 0.4% 0.3%Store supplies, containers, labels 0.5% 0.4% 0.5% 0.5%Office postage 0.1% 0.1% 0.1% 0.2%Delivery service 0.2% 0.2% 0.2% 0.4%Pharmacy computer expense 0.5% 0.3% 0.4% 0.4%Rent 1.4% 1.3% 1.1% 1.2%Utilities, telephone 0.6% 0.5% 0.4% 0.3%All other operating expenses 2.7% 2.8% 3.1% 2.8%Total Other Operating Expenses 7.0% 6.3% 6.7% 6.6%Total Operating Expenses 19.8% 20.1% 20.1% 21.4%Net Operating Income 2.3% 4.0% 3.0% 1.7%222009 NCPA Digest, sponsored by Cardinal Health