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		4,680,000			3,509,500
Gross margin		2,660,000			2,068,900
Selling and administrative expenses:
Selling expenses		1,377,000			1,078,000
Administrative expenses		708,000			609,500
Total expenses		2,085,000			1,687,500
Net operating income		575,000			381,400
Interest expense		104,000			84,000
Net income before taxes	$	471,000		$	297,400

Members of the companys board of directors are surprised to see that net income increased by only $173,600 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).)

A comparative Income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,578,400 3,529,500 2,868, 9ee McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,340, eee Cost of goods sold 4,680, see Gross margin 2,660, see Selling and administrative expenses: Selling expenses 1,377, eee Administrative expenses 708, eee Total expenses 2,885, eee Net operating income 575, eee Interest expense 184, eee Net income before taxes $ 471, eee 1,878, eee 689,500 1,687,500 381,400 84,000 $ 297,400 Members of the company's board of directors are surprised to see that net Income Increased by only $173,600 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 (l.e., 0.1234 should be entered as 12.3).) This Year Last Year 96 %6 96 96 0.0 % 0.0 % % 96 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 % 96 0.0 % 0.0 % 0.0 % 0.0 % 96 96 0.06 0.0%