A comparative Income statement is given below for McKenzie Sales, Ltd., of Toronto: HcKenzie Sales, Ltd. Comparative Income Statement This Year Sales $8,000,000 Last Year $6,000,000 Cost of goods sold 4,984,000 3,516,000 Gross margin 3,016,000 2,484,000 Selling and administrative expensess Selling expenses Total expenses Net operating income Interest expense Net incone before taxes 1,400,000 1,092,000 Administrative expenses 712,000 2,192,000 610,000 1,710,000 824,000 96,000 $728,000 774,000 64,000 $690,000 Members of the company's board of directors are surprised to see that net income increased by only $38,000 when sales increased by $2,000,000. Required: 1. Express each year's income statement in common-size percentages. (Round your percentage answers to 1 decimal place (... 0.1234 should be entered as 12.3).) This Year Last Year Sales % Cost of goods sold % % Gross margin 0.0 % 0.0 % Selling and administrative expenses: % % Selling expenses % % Administrative expenses Total selling and administrative expenses 0.0 % 0.0 % 0.0 % 0.0 % Net operating income % % Interest expense Net income before taxes 0.0 % 0.0 % Prev 1 of 6 Next > MacBook Air Check my work