Mulberry Designs, Inc. Comparative Income Statement Years Ended December 31, 2025 and 2024 2025 2024 Amount Increase (Decrease) Percentage $ 429,000 $ 371,000 $ 58,000 15.6 % Net Sales Revenue Expenses: Cost of Goods Sold 202,000 190,000 12,000 6.3 % Selling and Administrative Expenses 100,000 94,000 6,000 6.4 % 9,150 4,650 4,500 96.8 % Other Expenses 311,150 288,650 22,500 7.8 % Total Expenses $ 117,850 $ 82,350 $ 35,500 43.1 % Net Income Requirement 2. Why did 2025 net income increase by a higher percentage than net sales revenue? Net income increased by a higher percentage than total net sales revenue during 2025 because total expenses increased at a higher rate than revenues