A company has net sales of $874,000 and cost of goods sold of $579,500. Its net income is $104,500. The company's gross margin and operating expenses, respectively, are: Multiple Choice $294,500 and $390,700 $190,000 and $104,500 $294,500 and $190,000 $294,500 and $104,500 $684,000 and $190,000