Data for Mariner Designs, Inc., follow:

Data for Mariner Designs, Inc., follow:

           MARINER DESIGNS, INC.

         Comparative Income Statement

Year Ended December 31, 2012 and 2011

                                                     2012                                2011

Net sales revenue                 $431,000                            $372,350

Expenses:

   Cost of goods sold             $200,000                          $187,550

   Selling and general expenses    99,000                           91,050

   Other expense                            8,350                              6,850

  Total expense                        $307,350                           $285,450

Net income                                $123,650                        $86,900

Required:

1.  Prepare a horizontal analysis of the comparative income statement of Mariner Designs, Inc. Round percentage changes to one decimal place.

2.  Why did 2012 net income increase by a higher percentage than net sales revenue?