A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: McKenzie Sales, Limited Comparative Income Statement This Year Last Year Sales Cost of goods sold $ 8,000,000 4,984,000 $ 6,000,000 3,516,000 Gross margin 3,016,000 2,484,000 Selling and administrative expenses: 1,480,000 1,092,000 Administrative expenses 712,000 618,000 2,192,000 1,710,000 824,000 96,000 774,000 $ 728,000 Selling expenses Total expenses Net operating income Interest expense Net income before taxes 84,000 $ 690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increase by $2,000,000. 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).) Sales Cost of goods sold This Year Last Year % % % % % % Gross margin Selling and administrative expenses: Selling expenses % % Administrative expenses % % Total selling and administrative expenses % % Net operating income % %