A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales $ $7,380,000$ $ $5,608,800$ Cost of goods sold $4,690,0003,509,000$ Gross margin $2,690,0002,099,800$ Selling and administrative expenses: Selling expenses $1,396,0001,079,500$ Administrative expenses $708,000608,500$ Total expenses $2,104,0001,688,000$ Net operating income $586,000411,800$ Interest expense $101,00088,000$ Net income before taxes