McCormick Designs, Inc. Comparative Income Statement Years Ended December 31, 2018 and 2017 2018 2017 $ 430,150 $ 373,450 Net Sales Revenue Expenses: Cost of Goods Sold Selling and Administrative Expenses Other Expenses 200,000 100,250 6,750 307,000 123,150 $ 189,000 94,000 2,500 285,500 87,950 Total Expenses $ Net Income Comparative income Statement Years Ended December 31, 2018 and 2017 Increase (Decrease) Amount Percentage 2018 2017 430,150 $ 373,450 L % Net Sales Revenue Expenses: Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 189,000 94,000 200,000 100,250 6,750 307,000 123,150 $ 2,500 285,500 87,950 Net Income $ HITURI Percentage 430,150 $ 373,450 Net Sales Revenue Expenses Cost of Goods Sold Selling and Administrative Expenses Other Expenses Total Expenses 200,000 100,250 6,750 307,000 123,150 $ 189,000 94,000 2,500 285,500 87,950 $ Net Income Requirement 2. Why did 2018 net income increase by a higher percentage than not sales revenue? Net income increased by a higher percentage than total net sales revenue during 2018 because