Data for Mariner Designs, Inc., follow:

Requirements
1. Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes to one decimal place.
2. Why did 2012 net income increase by a higher percentage than net salesrevenue?

MARINER DESIGNS, INC. Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 $ 431,000 S 372,350 2011 Net sales revenue Expenses: Cost of goods sold Selling and general expenses Other expense Total expenses S 200,000 S 187,550 99,000 91,050 8,350 6,850 S 307.350S 285,450 S 123.650 S 86,900 Net income