A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd. Comparative Income Statement
	This Year			Last Year
Sales	$	7,340,000		$	5,578,400
Cost of goods sold		4,620,000			3,510,500
Gross margin		2,720,000			2,067,900
Selling and administrative expenses:
Selling expenses		1,389,000			1,076,000
Administrative expenses		709,500			610,500
Total expenses		2,098,500			1,686,500
Net operating income		621,500			381,400
Interest expense		101,000			94,000
Net income before taxes	$	520,500		$	287,400

Members of the companys board of directors are surprised to see that net income increased by only $233,100 when sales increased by $1,761,600.

Selling expenses		%		%
Administrative expenses		%		%
Total selling and administrative expenses		%		%
Net operating income		%		%
Interest expense		%		%
Net income before taxes