2 A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: 2.5 Sales McKenzie Sales, Limited Comparative Income Statement This Year $ 7,380,000 Last Year $5,608,800 Cost of goods sold oints Gross margin Selling expenses Administrative expenses Total expenses Selling and administrative expenses: 4,770,000 2,610,000 3,509,000 2,099,000 1,375,000 1,000,000 712,000 610,000 2,087,000 1,690,000 523,000 409,800 103,000 91,000 $420,000 eBook Net operating income Interest expense Net income before taxes i Hint Print References $318,800 Members of the company's board of directors are surprised to see that net income increased by only $101,200 when sales increased by $1,771,200. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (i.e. 0.1234 should be entered as 12.3).) This Year Last Year Selling expenses Sales Cost of goods sold Gross margin Selling and administrative expenses: Administrative expenses % % % %6 % Total selling and administrative expenses % % Net operating income % Interest expense % Net income before taxes