A comparative income statement is given below for McKenzie Sales, Limited, of Toronto: Last Year $ 5,624,000 3,506,500 2,117,500 McKenzie Sales, Limited Comparative Income Statement This Year Sales $ 7,400,000 Cost of goods sold 4,680,000 Gross margin 2,720,000 Selling and administrative expenses: Selling expenses 1 1,371,000 Administrative expenses 705,500 Total expenses 2,076,500 Net operating income 643,500 Interest expense 103,000 Net income before taxes $ 540,500 1,080,000 614,000 1,694,000 423,500 86,000 $ 337,500 $ Members of the company's board of directors are surprised to see that net income increased by only $203,000 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 % % % % 0.0 % 0.0 % % % 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 % % % 0.0 % 0.0 % 0.0 % 0.0 % % % 0.0 % 0.0 %