NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

TABLE 15 • 2008 Common-Sized (Average) Income StatementPercentage of Total Sales—By Geographic RegionWest West-Central East-Central Northeast SoutheastSalesPrescription sales 92.3% 93.4% 93.5% 88.8% 95.8%All other sales 7.7% 6.6% 6.5% 11.2% 4.2%Total Sales 100% 100% 100% 100% 100%Cost of Goods SoldPrescriptions costs 70% 72.9% 72.9% 68.8% 74.4%All other costs 5.1% 4.1% 3.7% 6.3% 3%Total Cost of Goods Sold 75.1% 77% 76.6% 75.1% 77.4%Gross Profit 24.9% 23% 23.4% 24.9% 22.6%Operating ExpensesPayroll expensesSalaries, wages 12.9% 11.6% 12.1% 12.8% 11.6%Payroll tax, workers’ comp, employee benefits 2% 1.8% 1.8% 2.2% 1.7%Payroll Expenses 14.9% 13.4% 13.9% 15% 13.3%Other Operating ExpensesAdvertising 0.5% 0.6% 0.5% 0.2% 0.4%Insurance 0.3% 0.4% 0.3% 0.4% 0.4%Store supplies, containers, labels 0.7% 0.5% 0.3% 0.4% 0.4%Office postage 0.2% 0.1% 0.1% 0.2% 0.1%Delivery service 0.3% 0.3% 0.3% 0.4% 0.2%Pharmacy computer expense 0.7% 0.4% 0.5% 0.3% 0.3%Rent 1.4% 1.1% 1% 1.6% 1.1%Utilities, telephone 0.5% 0.4% 0.4% 0.3% 0.4%All other operating expenses 3% 3.2% 3.3% 2% 2.9%Total Other Operating Expenses 7.6% 7% 6.7% 5.8% 6.2%Total Operating Expenses 22.5% 20.4% 20.6% 20.8% 19.5%Net Operating Income 2.4% 2.6% 2.8% 4.1% 3.1%Geographic Summary35