Not Safts $750,000 109 Cost of goods sold 467,250 62.3 i % % 385,920 Gross profit 282,750 37.7 % 217,080.0 % Selling expenses 117,750 15.7 i % 68,139 % Administrative expenses 59,250 7.9 i % 51,255 % Total operating expenses 177,000 23.6 i % 119,394 % Income before income taxes 105,750 14.1 % 97,686 % Income tax expense Net income 30,750 4.1 % 24,723 % $75,000 10 % $72,963 %