A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenaie Sales, Ltd. Comparative Income Statement This Year Last Ye Sales Cost of goods sold Gross margin Selling and administrative expenses $7,390,000 5,616,400 2,690,000 2 109 400 1,398,000 1,077,500 4,700,000 3,507,000 A00 eBook Hint Print Selling expenses 2,101,000500 1,687,000 422, 400 703,000 Administrative expenses Total expenses Net operating income Interest expense Net inoome before taxes 589,000 104,000 485, 000 69,000 333, 400 Merences Members of the company's board of directors are surprised to see that net income increased by only $151,600 when sales increased by $1773600