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

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

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Sunny Day Designs Comparative Income Statement Years Ended December 31, 2012 and 2011 2012 2011 Net sales revenuc $540,000 $450,000 Expenses $243,000 $225,000 Selling and general expenses...97,200 90,000 2,400 22,500 372,600 337,500 $167,400 $112,500 Cost of goods sold Other expense Total expenses Net income