A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto:

McKenzie Sales, Ltd.

Comparative Income Statement

This Year Last Year

Sales $ 7,330,000 $ 5,570,800

Cost of goods sold 4,610,000 3,506,500

Gross margin 2,720,000 2,064,300

Selling and administrative expenses:

Selling expenses 1,390,000 1,073,000

Administrative expenses 711,500 612,500

Total expenses 2,101,500 1,685,500

Net operating income 618,500 378,800

Interest expense 98,000 92,000

Net income before taxes $ 520,500 $ 286,800

Members of the companys board of directors are surprised to see that net income increased by only $233,700 when sales increased by $1,759,200.

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).)