The company is Omnicare, please analysis what reason that the percentage of COGS

Question

The company is Omnicare,

please analysis what reason that the percentage of COGS has decreased.

Income Statement Common-size Analysis

                                              2010        2009
Revenue                            100.00%       100.00%
Cost of Goods / Services        77.64%      75.75%
Gross Profit                           22.36%      24.25%
Operating Expense                  12.87%     13.24%
Interest Expense                     2.21%      1.94%
Research and Development Expense N/A N/A
Income Tax Expense                 0.19%     1.58%
Income from Continuing Operations -1.40% 2.81%
Net Income                              -1.73%   3.44%

Explanation / Answer

Since Expenses in rest of the areas increased The COGS would then become a lesser percentage of the revenue

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