A company has net sales of $892,000 and cost of goods sold of $591,500. Its net income is $106,700. The company's gross margin and operating expenses, respectively, are:

$300,500 and $399,300

$300,500 and $193,800

$300,500 and $106,700

$193,800 and $106,700

$698,200 and $193,800