Assume that you are a financial analyst and you have just been handed a 2000 financial report of Firm X, a large, global pharmaceutical firm. The company competes in both traditional pharmaceutical products and the evolving biotechnology products. Also assume that you have been given the following data on the pharmaceutical industry.

Firm X

Industry Average

Sales

$5.0 billion

$1.2 billion

Net income

$1.3 billion

$0.12 billion

Advertising

$0.1 billion

$0.2 billion

Research and development

$0.4 billion

$0.3 billion

New investment in facilities

$0.5 billion

$0.3 billion

Given the above data, evaluate the cost management performance of Firm X.