The Haines Corp. shows the following financial data for 20X1 and 20X2.

For each year, compute the following and indicate whether it is increasing or decreasing profitability in 20X2 as indicated by the ratio.
a. Cost of goods sold to sales.
b. Selling and administrative expense to sales.
c. Interest expenses to sales.

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20X1 20X2 Sales Cost of goods sold Gross profit Selling & administrative expense S3,230,000 2.130,000 1,100,000 298.000 802,000 47200 754,800 264,180 S490.620 $3,370,000 850.000 520,000 227,000 293,000 51.600 241,400 84.490 $156.910 Operating profit Interest expense ncome before taxes Taxes (35%) ncome after taxes