Year 1 Year 2 Sales 7,320,000 6,263,200 Cost of goods sold 4,670,000 3,515,500 Gross margin 2,650,000 2,747,700 Selling and administrative expenses: Selling expenses 1,381,000 1,074,000 Administrative expenses 702,000 610,000 Total expenses 2,083,000 1,684,000 Net operating income 567,000 1,063,700 What is the percentage change in gross margin from Year 1 to Year 2? 3.7% 36.2% 1.3% 96.4%