there is a part 2 for the problem i will be attaching to this and also the questions for you to answer.

Operational Information - Part 1 The Vancouver region of Dynamadics has operations in the city of Vancouver and the city of Victoria. This region has had great success marketing and selling its products, perhaps due to its accessibility to international customers. Sales volumes and revenues have been high, however the owners are concerned with the low level of operating income in relation to these sales levels. You have been asked to conduct analysis and work with the Vancouver regional managers to identify opportunities to improve profits. You have received the following operating results for 2020. Dynamadics Inc. Vancouver Region Income Statement For the Year Ended December 31, 2020 Sales $ 1,160,000 Cost of goods sold 670,000 Gross Margin 490,000 Selling and administrative expenses 313,000 Operating income $ 177,000 (note: there were no inventories at the beginning and end of the year)