A comparative income statement is given below for McKenzie Sales, Ltd., of Toronto: Last Year $5,624,000 3,509,000 2,115,000 McKenzie Sales, Ltd. Comparative Income Statement This Year Sales $7,400,000 Cost of goods sold 4,770,000 Gross margin 2,630,000 Selling and administrative expenses: Selling expenses 1,399,000 Administrative expenses 711,500 Total expenses 2,110,500 Net operating income 519,500 Interest expense 99,000 Net income before taxes $ 420,500 1,077,000 617,000 1,694,000 421,000 89,000 $ 332,000 Members of the company's board of directors are surprised to see that net income increased by only $88,500 when sales increased by $1,776,000. 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).) This Year Last Year % % % % % % 76 % 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 % % % % % % % % %