The following information was drawn from the records of Milan Company. Revenue Cost of goods sold Gross Margin Operating Expenses Net Income Year 2 $120,000 (78,000) 42,000 (24,000) $ 18,000 Year 1 $100,000 (60,000) 40,000 (20,000) $ 20,000 Vertical analysis suggests that the most likely explanation as to why net income decreased is