1 A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: 1.8 McKenzie Sales, Limited Comparative Income Statement points Sales Cost of goods sold Gross margin This Year $7,350,000 4,740,000 2,610,000 Last Year $ 5,586,000 3,508,000 2,078,000 Selling and administrative expenses: Selling expenses 1,390,000 1,074,000 eBook Administrative expenses 708,000 Total expenses 2,098,000 617,000 1,691,000 Net operating income Interest expense Hint Net income before taxes 512,000 96,000 $416,000 387,000 Print References 94,000 $293,000 The company's board of directors is surprised to see net income increased by only $123,000 when sales increased by $1,764,000. Required: 1. Express each year's income statement in common-size percentages. Note: Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3). This Year Last Year Sales Cost of goods sold Gross margin % % Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % Interest expense Net income before taxes %