(Cost management and strategy) As a financial analyst, you have just been handed the 2010 financial report of Firm A, a large, global pharmaceutical company. Firm A competes in both traditional pharmaceutical products and in evolving biotechnology products. The following data (in billions) on Firm A and the pharmaceutical industry are available:
|
Firm A |
Industry Average |
|
|
Sales |
$2.00 |
$0.960 |
|
Net income |
0.54 |
0.096 |
|
Advertising |
0.04 |
0.160 |
|
Research and development |
0.16 |
0.240 |
|
New investment in facilities |
0.20 |
0.240 |
Given these data, evaluate the cost management performance of Firm A.