Prepare a horizontal analysis of the following comparative income statement of Spellbound Designs.

Why did net income increase by a higher percentage than net sales revenue during 2012?

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Spellbound Designs Comparative Income Statements Years Ended December 31, 2012 and 2011 2012 2011 $504,000 $420,000 Expenses: Cost of goods sold.... ..$241,920$210,000 Selling and general expense120,960 $105,000 $30,240 21,000 $393,120 5336,000 ...$110,880 84,000 Other expense Total expenses