Company: McKinnon Sales Co.

	2011	2010
Sales	$8,000,000	6,000,000
Less: COGS	4,984,000	3,516,000
Gross Margin	(Answer)	(Answer)
Less: Operating Expense Selling expense Admin expense Total Expenses	1,480,000 712,000 (Answer)	1,092,000 618,000
Net Operating Income	(Answer)	(Answer)
Less Interest Expense	96,000	84,000
Net Income Before Taxes	(Answer)	(Answer)

1. Solve for Gross Margin, Total Expenses, Net Operating Income, and Net Income before Tax.
2. Calculate comparative data between the two years shown, comment on the changes year to year. Areas of concern or improvement, etc.