A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Sales $7,350,000 Cost of goods sold 4,750,000 Last Year $5,586,000 3,514,500 Gross margin 2,600,000 2,071,500 Selling and administrative expenses: 1,390,000 1,081,000 Administrative expenses 712,000 611,000 2,102,000 1,692,000 Interest expense 498,000 100,000 379,500 $ 398,000 Selling expenses Total expenses Net operating income. Net income before taxes 86,000 $ 293,500 Members of the company's board of directors are surprised to see that net income increased by only $104,500 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 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 % %