\begin{tabular}{lrr} & Year 2 & Year 1 \\ \hline Administrative expenses & $37,000 & $20,000 \\ Cost of merchandise sold & 350,000 & 320,000 \\ Income tax expense & 40,000 & 32,000 \\ Sales & 800,000 & 700,000 \\ Selling expenses & 150,000 & 110,000 \end{tabular} Bluestem Company Comparative Income Statement For Years Ended December 31, Year 2 and Year 1 b. Complete the following regarding significant changes disclosed by the comparative income statement. The moit significant increase in expenses is