A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Mckenzie Sales, Ltd. Comparative Income Statement This Year $7,350,000 4,600,000 Sales Cost of goods sold Last Year $5,586,000 3,507,500 Gross margin 2,750,000 2,078,500 Selling and administrative expenses: Selling expenses Administrative expenses 1,374,000 710,000 1,080,000 609,000 Total expenses 2,084,000 1,689,000 Net operating income Interest expense 666,000 104.000 88,000 Net income before taxes $ 562,000 $ 301,500 Members of the company's board of directors are surprised to see that net income increased by only $260,500 when sales increased by $1,764,000. 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 % 0.0% % 0.0% % % Sales Cost of goods sold 1 Gross margin Selling and administrative expenses: Selling expenses S Administrative expenses Total selling and administrative expenses Net operating income Interest expense Net income before taxes 0.0% 0.0% 0.0% % 0.0 % 0.0 %