Stuart Manufacturing produces metal picture frames. The company's income statements for the last two years are given below: Last year

This year

Units sold ...................................................

50,000

70,000

Sales ...........................................................

$800,000

$1,120,000

Cost of goods sold .....................................

550,000

710,000

Gross margin .............................................

250,000

410,000

Selling and administrative expense ...........

150,000

190,000

Net operating income ................................

$100,000

$ 220,000