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

McKenzie Sales, Ltd. Comparative Income Statement
This Year	Last Year
Sales ...	$80,00,000	$60,00,000
Cost of goods sold ...	49,84,000	35,16,000
Gross margin ...	30,16,000	24,84,000
Selling and administrative expenses:
Selling expenses ...	14,80,000	10,92,000
Administrative expenses ...	7,12,000	6,18,000
Total expenses ...	21,92,000	17,10,000
Net operating income	8,24,000	7,74,000
Interest expense ...	96,000	84,000
Net income before taxes ...	$ 7,28,000	$ 6,90,000

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 million dollars.

Required:

1.     Express each year's income statement in common-size percentages. Carry computations to one decimal place.

2.     Comment briefly on the changes between the two years.