Question 26 (2 points) Year 1 Year 2 Sales 6,320,000 6,263,200 Cost of goods sold 4,670,000 3,915,500 Gross margin 1,650,000 2,347,700 Selling and administrative expenses: Selling expenses 1,381,000 1,474,000 Administrative expenses 702,000 610,000 Total expenses 2,083,000 2,084,000 Net operating income -433,000 263,700 What is the percentage change in gross margin from Year 1 to Year 2? O 70.3% 26.1% 42.3% 11.0%