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

McKenzie Sales, Limited Comparative Income Statement

This YearLast Year

Sales$ 7,350,000$ 5,586,000

Cost of goods sold4,780,0003,510,000

Gross margin2,570,0002,076,000

Selling and administrative expenses:

Selling expenses1,378,0001,081,500

Administrative expenses707,500613,000

Total expenses2,085,5001,694,500

Net operating income484,500381,500

Interest expense98,00091,000

Net income before taxes$ 386,500$ 290,500

Members of the companys board of directors are surprised to see that net income increased by only $96,000 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).)