3 5 Sints 03.07.11 A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: McKenzie Sales, Ltd Comparative Income Statement This Year Last Year Sales $ 7.340,000 $5,578,400 Cost of goods sold 4,790,000 3,515,000 Gross margin 2,550,000 2,063,400 Selling and administrative expenses: Selling expenses 1,372,000 1,073,500 Administrative expenses 705,000 611,000 Total expenses 2.077,000 1,684,500 Net operating income 473.000 1378.900 Interest expense 103,000 86,000 Net income before taxes $ 370,000 $1292,9001 eBook Hint Print References Members of the company's board of directors are surprised to see that net income Increased by only $77,100 when sales increased by $1,761,600. 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 % * Dols 0.050 Sales Cost of goods sold Gross margin Selling and administrative oxpenses Selling expenses Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net Income before taxes * 0.01% 00 0.0 00 0.0% 00