A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto McKenzie Sales, Ltd Comparative Income Statement This Year Last Year $7,380,000 $5,608,800 Sales Cost of goods sold 4,600,000 3,508,000 2,780,000 2,100,800 Gross margin Selling and administrative expenses: Selling expenses 1,395,000 1,075,500 Administrative expenses 703.000 608,000 2,098,000 1,683,500 Total expenses Net operating income 682.000 417.300 88,000 Interest expense 103.000 579,000 329,300 Net income before taxes Members of the company's board of directors are surprised to see that net income increased by only $249,700 when sales increased by $1,771,200